Gold Price Blog

End of Day Update

$1,180.97 +12.20

4:36pm EST

The spot gold price finished the month of June on a positive note, rising over 1% to cut its monthly decline to $62.68 per ounce - still the largest monthly loss since the $84.24 drop in December 2009, however.

In spite of today's rally, the spot price of gold finished lower for the sixth consecutive week - a development that had not occurred since the bull market in gold began in 2002.

Gold Price: $1,180.97, +12.20, +1.04%

Silver Price: $17.97, +0.32, +1.81%

US Dollar Index: 81.56, -0.07, -0.08%

Oil Price: $78.94, -0.58, -0.74%

Copper Price: $3.31, +0.02, +0.56%

10-Year Yield: 2.91%, -0.08, -2.54%

COMEX gold post 5.0% monthly decline

1:55pm EST

COMEX gold futures - per the August contract - climbed $12.70, or 1.1%, to $1,183.90 per ounce. For the month of July gold futures finished lower by $62.00, or 5.0%. Copper futures - per the September contract - rose $0.02, or 0.7%, to $3.31 per pound Friday. With today's advance copper futures extended their monthly gain to 12.0% - the best month since April 2009.

Economy grew 2.4% in Q2

$1,173.38 +4.60

8:43am EST

The U.S. economy grew 2.4% in the second quarter, coming in just under the consensus estimate of 2.5%. First quarter GDP was revised downward from 3.0% to 2.7%. Stock futures fell slightly lower on the release, while the gold price has gained modestly on the news.

Gold steady ahead of GDP

$1,172.00 +3.23

8:14am EST

The gold price was little changed in the premarket session, however overseas markets traded as much as 1% lower in Europe and 1.6% off in Japan. The dollar was stronger against the pound and euro, but weaker against the yen. Commodities were also lower with the copper rally halted for the time being as the metal retreated from the $3.30 per pound level. Traders are awaiting the release of the second quarter GDP report which is expected to show a lower rate of growth, and mixed results for economic sectors with consumer spending cooling, but business activity picking up.

End of Day Update

$1,168.77 +5.51

4:17pm EST

The gold price had its best day in over a week after St. Louis Fed President James Bullard warned of a "Japan-style outcome" for the U.S. economy if the only tool used to fight deflation is a low-rate policy. "A better policy response to a negative shock is to expand the quantitative easing program through the purchase of Treasury securities," Bullard wrote in a research paper released today. Stocks reversed an earlier gain but closed well off their intraday lows. Commodities showed strength with copper continuing its recent rally and crude oil pushing above $78. The U.S. dollar slid against the pound, yen and euro, which closed above $1.30.

Gold Price: $1,168.77, +5.51, +0.47%

Silver Price: $17.65, +0.13, +0.74%

US Dollar Index: 81.64, -0.54, -0.66%

Oil Price: $78.20, +1.21, +1.57%

Copper Price: $3.28, +0.04, +1.14%

10-Year Yield: 2.98%, -0.00, -0.07%

COMEX gold futures gain 0.7%

3:56pm EST

COMEX gold futures for August delivery closed at $1,168.40, a gain of $8.00 or 0.7%. The September silver contract rose $0.07 to $17.69, while September palladium soared nearly 5% to close at $491.20 on light volume.

Fed Prez: fight deflation with more qe

$1,163.86 +0.59

12:51pm EST

The Federal Reserve should resume asset purchases if the economy falters and price deflation threatens rather than rely solely on near-zero interest rates, said St. Louis Fed President James Bullard. In a research paper released today about the possibility of deflation, Bullard wrote "The U.S. is closer to a Japanese-style outcome today than at any time in recent history."

"The conventional wisdom is that Japan has suffered through a 'lost decade' partially attributable to the fact that the economy has been stuck in the deflationary, low nominal interest rate steady state," he said. "To the extent that is true, the U.S. and Europe can hardly afford to join Japan in the quagmire."

Central bank is "behind the curve"

$1,163.32 +0.05

11:58am EST

A Reserve Bank of India official told reporters that the country is behind the curve in lifting policy rates and controlling inflation pressures. The official, who declined to be identified, said that Indian monetary policy "needs to be more aggressive," in raising rates. Inflation in India was running in excess of 9% two weeks ago, down from a 12.5% reading the previous week. The official made his remarks just two days after the central bank raised its key borrowing rate 50 basis points to 4.5%, and it lending rate by 25 basis points to 5.75%. The remarks spurred a sell-off in Indian bonds.

Jobless claims show little improvement

$1,164.47 +1.21

10:43am EST

The Labor Department reported that jobless claims for the week ended July 24 fell by 11,000 to 457,000, lower than the forecasted 459,000, one week after the claims rate sharply rose. Although the four-week moving average also declined, from a revised 457,000 to 452,500 claims, the data show little improvement in the employment picture. The number of continuing claims by workers drawing benefits for more than one week in the week ended July 17 increased by 81,000 to 4,565,000 from the preceding week's revised level of 4,484,000.

Gold flat ahead of job claims

$1,162.87 -0.40

8:12am EST

The gold price was flat ahead of the weekly jobless claims report, but overseas stocks and U.S. stock futures were modestly positive. Commodities also were trading higher as the European Commission released data showing confidence in the region's economy rising to its highest level in two years and German unemployment fell for the 13th straight month. Bonds were little changed in premarket activity.

End of Day Update

$1,163.27, +2.12

4:16pm EST

The gold price closed slightly higher after trading in a narrow range on reported light volume. U.S. stocks were down after a report on durable goods showed a 1% decline in orders in June, well shy of the 1% increase that was forecast. Stocks were not helped in the afternoon after the release of the Beige Book, which showed continued economic improvement in the second quarter, but at a much slower pace. Commodities were mixed with crude oil down and copper gaining, while bonds advanced with the 10-year Treasury yield dropping below 3.0%.

Gold Price: $1,163.27, +2.12, +0.18%

Silver Price: $17.54, -0.13, -0.74%

US Dollar Index: 82.15, -0.01, -0.01%

Oil Price: $76.70, -0.74, -0.95%

Copper Price: $3.24, +0.03, +0.97%

10-Year Yield: 2.99%, -0.06, -1.83%

COMEX gold futures edge higher

2:27pm EST

COMEX gold futures for August delivery gained $2.40 to close at $1,160.40 per ounce, one day after the front-month contract was routed in a $25 drubbing. The September silver contract lost $0.19, or 1.1%, to settle at $17.44 per ounce, while the October platinum futures shed $5.00 to finish at $1,536.70.

gold steady after beige book

$1,162.26 +1.11

2:17pm EST

The gold price remained near $1,160 following the release of the Federal Reserve's latest Beige Book, which contains information collected by each Federal Reserve Bank on economic conditions in their respective districts. The latest report indicated that economic activity across the U.S. has continued to increase in recent months, but the pace has "slowed" recently and the level of increases were "modest."

Barclays: $1,127 gold price possible

$1,160.10 -1.05

10:21am EST

Technical analysis by Barclays Capital shows a scenario in which the gold price may decline to $1,127 per ounce over the next several weeks. The $20 drop in the gold price on Tuesday broke a 21-month trend line according to MacNeil Curry, a Barclays Capital analyst. The next level of technical support is the 200-day moving average at $1,148, and then $1,127 - the price equal to a 23.6% Fibonacci retracement of the gold price ascent starting in October 2008 through the record high of $1,265 set last month. Recent reports show investors trimming gold positions as ETF holdings of physical gold have fallen for three straight weeks, and net non-commercial positions in gold futures have dropped. "The trend-line break is forcing a lot of people out of their positions," said Curry.

Gold price steady in mixed market

$1,162.83 +1.68

8:18am EST

The gold price held above its closing price after a 1.8% plunge yesterday as European stocks fell, bringing their six-day rally to an end. Markets retreated after Bank of England Governor Mervyn King commented that economic stimulus is still needed and "there is some considerable distance to travel" before monetary policy and interest rates can return to normal. Crude oil traded lower, but copper continued its ascent, rising to $3.24 per pound.

End of Day Update

$1,161.15, -20.93

4:12pm EST

The spot gold price tumbled over 1.5% to also post its worst day since July 1. Furthermore, the price of gold finished at its lowest level on a closing basis since April 26. Unlike most times when the gold price has undergone a significant move, today's drop was not associated with a substantial move in the euro/U.S. dollar currency cross - which rose 0.1% to 1.3001.

While the gold price has detached positively from major currencies for most of 2010, over the past month it has done so in a negative manner.

Gold Price: 1,161.15, -20.93, -1.77%

Silver Price: $17.67, -0.51, -2.81%

US Dollar Index: 82.16, +0.12, +0.15%

Oil Price: $77.55, -1.43, -1.81%

Copper Price: $3.20, -0.03, -0.73%

10-Year Yield: 3.05%, +0.05%, 1.87%

gold futures tumble to 3-month low

2:24pm EST

COMEX gold futures - per the August contract - plunged $25.10 to $1,158.00 per ounce, its worst decline since July 1 and its lowest level since April 26. Silver futures - per the September contract - fell 3.2% to $17.63 per ounce.

Gold tumbles toward $1,170

$1,170.40 -11.68

10:03am EST

The gold price tumbled toward the $1,170 level as morning trading progressed amid liquidation in the precious metals sector. At $1,170 per ounce the spot price of gold is now at its lowest level since April 29.

Gold holds above the $1,180 level

$1,185.26 +3.18

8:03am EST

The gold price held above the $1,180 level in premarket trading as investors attempted to determine the next move for the metal. With the SPDR Gold Trust ETF redeeming 18.7 tonnes of physical gold holdings month to date, traders are trying to gauge whether investment demand is turning after the gold price set an all-time high last month. Overseas stock markets were mixed with the European bourses gaining for the sixth straight session and most Asian exchanges slipping. U.S. stock futures pointed to a higher open and the yield on the 10-year Treasury bond broke back above 3% as investors continue to reallocate from safer assets to riskier ones.

End of Day Update

$1,182.08 -5.21

4:42pm EST

The gold price posted a modest loss but held above the $1,180 level amid further flows into risk assets on Wall Street. With today's drop the gold price is now on pace for its sixth straight weekly decline, a rarity during the gold bull market that began in 2001.

The U.S. dollar moved lower alongside the gold price, as the euro/dollar currency cross rose toward its ten-week high near 1.300.

Gold Price: 1,182.08, -5.21, -0.44%

Silver Price: $18.18, +0.08, +0.44%

US Dollar Index: 82.05, -0.42, -0.51%

Oil Price: $78.97, -0.01, -0.01%

Copper Price: $3.23, +0.05, +1.40%

10-Year Yield: 3.00%, -0.01, -0.13%

gold futures fall, copper hits 2-month high

2:33pm EST

COMEX gold futures - per the August contract - settled at $1,183.10, down $4.70, or 0.4%. Copper futures - per the September contract - climbed $0.04, or 1.2%, to $3.22 per pound, the highest close for the industrial metal since mid-May.

Gold turns negative, new home sales rise

$1,181.12 -6.16

10:15am EST

The gold price turned negative in morning trading following the release of the June new homes sales report, which came in better than expected - at 330,000 seasonally adjusted rate, versus an estimate of 316,000. The euro/U.S. dollar currency cross was higher by 0.2% at 1.2950 as gold dipped.

Gold prices hovers under $1,200

$1,187.71 +0.42

9:41am EST

The gold price is, once again, hovering near unchanged on a quiet Monday morning on Wall Street. After sliding 1.3% last week, gold investors will be closely watching whether gold can recapture the psychologically important $1,200 per ounce level in what is a quiet week on the macro-economic data front.

End of Day Update

$1,187.28 -7.93

4:18pm EST

The gold price rallied to $1,204 in pre-market trading before it began a day-long slide, closing below the $1,190 level. Positive economic news from Britain and Germany appeared to bring investors with renewed risk appetite to the metal, but reports of less-than-stressful methodology used in the European bank stress test sent the markets down again. After better than expected test results were reported later in the trading day, stocks began another ascent but the gold price failed to participate.

Gold Price: 1,187.28, -7.93, -0.66%

Silver Price: $18.10, -0.01, -0.06%

US Dollar Index: 82.48, -0.16, -0.19%

Oil Price: $79.06, -0.25, -0.30%

Copper Price: $3.19, +0.03, +0.92%

10-Year Yield: 2.99%, +0.06, +1.95%

China to keep economy in high gear

$1,187.11 -8.10

3:38pm EST

China's economy grew at a 10.3% pace in the second quarter, slowing from the 11.9% rate posted in the first quarter, the result of lower stimulus spending from the government and tighter controls on credit. Though growth is down from the first quarter, indications are that the Chinese economy in 2010 will expand by 9.5%-10%, and lap the 2009 rate of 9.1%. Chinese Premier Wen Jiabao said the government will keep policy stable in the second half of the year but that policy management will be guided by the objective of "fast and steady economic growth."

Metal futures close mixed on day

2:26pm EST

COMEX gold futures for August delivery settled at $1,187.80, down $7.80 from the previous session. The September silver contract also declined, losing $0.02 per ounce to close at $18.10. September palladium rose $9.85 to $466.75, while October platinum gained $13.40 to close at $1,542.80.

Seven banks fail stress test

$1,189.58 -5.64

1:13pm EST

The vast majority of banks have passed the European bank stress test according to reports, but seven of Europe's largest 91 banks which didn't will likely be required by regulators to raise more capital. Banks that failed to pass the stress test were Germany's Hypo Real Estate bank which had already been taken over by the German government, ATEBank of Greece and five Spanish savings banks. Postbank, one of Germany's largest publicly traded banks, passed the stress test but will likely face market pressure to increase reserves. Earlier reports on the methodology of the stress test raised concerns among investors whether the test was stringent enough to detect banks' ability to withstand further economic and financial turmoil, including sovereign debt defaults.

Markets slip on stress test scope

$1,189.04 -6.17

10:30am EST

Markets wobbled after reports that the European Central Bank stress test would only examine loss exposure on the sovereign debt in banks' trading books, rather than bonds held for long-term investment. Consequently, the stress test does not include a bond default scenario.

Gold off highs, euro slides

$1,190.52 -4.70

9:56am EST

Gold fell $14 off its $1,204 morning high as the euro slid. The euro is hovering near 1.281 against the U.S. dollar after trading as high as 1.296 earlier this morning. Strength in the U.S. dollar pressured the gold price, which remains in consolidation mode near the $1,200 per ounce level.

Gold Regains $1,200 level

$1,202.12 +6.91

8:19am EST

The gold price traded modestly higher while the euro, pound, and European stocks were also up as new economic data showed improvement in growth in Britain and Germany. The British economy rose 1.1% in the second quarter, twice the increase forecasted by analysts, and the largest quarterly gain in four years. Germany's business climate index rose sharply to 106.2 despite expectations of a decline to 101.8. Commodities were trading mixed with crude oil dipping below $79 per barrel, but copper continuing to gain. Treasuries yields increased as investors are re-allocating funds to riskier assets.

End of Day Update

$1,195.21 +10.15

4:10pm EST

The gold price climbed 0.9% as the yellow metal gained alongside a broad-based rally in financial markets. With today's advance the gold price returned to positive territory for the week, and is eyeing its first weekly gain since June 14-18.

Gold Price: $1,195.21, +10.15, +0.86%

Silver Price: $18.09, +0.42, +2.38%

US Dollar Index: 82.64, -0.66, -0.79%

Oil Price: $79.12, +2.56, +3.34%

Copper Price: $3.16, +0.07, +2.21%

10-Year Yield: 2.93%, +0.05, +1.74%

Reporting requirement hits coin dealers

$1,195.73 +10.66

3:36pm EST

ABC News reports that a provision of the new healthcare legislation passed earlier this year may place gold coin dealers under greater IRS scrutiny and negatively impact profits. According to the report, a tack-on provision to the healthcare bill will require that purchases of goods and services by small businesses and the self-employed that exceed $600 during a calendar year be reported on Form 1099. This would include purchases made by coin and bullion dealers from the general public and other small dealers.

One Michigan gold coin dealer interviewed in the report noted that he will have to fill out 10,000 to 20,000 tax forms per year after the law takes effect in 2012. "I'll have to hire two full-time people just to track all this stuff, which cuts into my profitability," he said. Even the IRS has misgivings about the new requirement. According to a report issued last month by the agency the new rule "may present significant administrative challenges to taxpayers and the IRS."

broad-based metals rally

2:43pm EST

COMEX gold futures - per the August contract - rose $3.80 to $1,195.60, closing below $1,200 per ounce for the fifth consecutive trading session. Copper futures extended their recent gains, rising $0.07, or 2.3%, to $3.16 per pound, while silver for September delivery advanced $0.32, or 1.8%, to $18.12 per ounce.

TD securities raises gold forecast

$1,198.93 +13.87

10:16am EST

TD Securities raised it gold price forecast to $1,300 per ounce in 2011 and $1,400 per ounce in 2012, based on the uncertainty facing the global economy and the resulting investment demand for the metal as investors seek protection from macroeconomic risks. The company previously targeted a gold price of $1,100 for next year, and $1,000 for the following year.

gold flat on "uncertain" outlook

$1,185.83 +0.76

8:38am EST

The gold price held steady in the pre-open session as U.S. stock futures pointed to a 1% gain at the open for the major indices after positive corporate earnings announcements overnight. European stock markets rallied after data was released showing stronger than expected manufacturing and service sector growth. The news further depressed the dollar which began a slide yesterday after Federal Reserve Chairman Ben Bernanke called the economic outlook "unusually uncertain."

End of Day Update

$1,185.07 -7.04

4:30pm EST

The spot gold price posted a modest loss after holding near $1,190 prior to Bernanke's testimony on the economy. With today's weakness the gold price is on pace for its fifth straight weekly decline - which has not occurred since November 27, 2009 through December 31, 2009.

Gold Price: $1,185.07, -7.04, -0.59%

Silver Price: $17.67, -0.02, -0.11%

US Dollar Index: 83.25, +0.47, +0.57%

Oil Price: $76.49, -1.09, -1.40%

Copper Price: $3.07, +0.07, +2.32%

10-Year Yield: 2.87%, -0.08, -2.77%

gold dips after bernanke's testimony

$1,184.45 -7.66

2:37pm EST

The gold price turned modestly lower following the release of Fed Chariman Ben Bernanke's semi-annual testimony to Congress on the state of the economy. In his statement Bernanke noted that the economic outlook has become "unusually uncertain," and that the Fed remains "prepared to take further policy actions as needed to foster a return" to full employment with low and stable inflation.

gold futures flat, copper climbs

1:55pm EST

COMEX gold futures for August delivery rose $0.10 to $1,191.80 per ounce as the yellow metal stabilized ahead of testimony on the economy from Fed Chairman Ben Bernanke. Copper futures advanced 3.0% to $3.09 per ounce, its best day since mid-June.

$1,500 gold forecast by 2012

$1,191.51 -0.59

11:34am EST

CIBC updated its gold price forecast, raising its 2012 target price from $1,000 to $1,500 per ounce and maintaining its $1,400 target for 2011. In its research report, the firm noted that "We think double dipping into gold as a combined insurance policy against a double dip recession and absolute performance stemming from a typical fall rally in bullion makes a lot of sense."

boe to resume quantitative easing?

$1,194.00 +1.90

9:02am EST

The minutes from the most recent Bank of England (BOE) monetary policy meeting revealed that the BOE committee discussed resuming quantiative easing earlier this month, as evidence of slower growth has emerged since May. However, seven of the eight committee members voted for no change in policy.

Gold price, equities edge higher

$1,194.64 +2.53

8:29am EST

The gold price was slightly higher in the premarket session as U.S. stock futures and overseas bourses made modest headway on earnings announcements overnight that, on balance, beat estimates. Markets took comfort in particular from Apple earnings, but missed revenue targets from other companies continue to worry investors who are attempting to fathom the strength of the economy through profit reports. Crude oil was also up, and copper extended gains from its previous session. The U.S. dollar edged higher against the other major currencies while bonds were little changed.

End of Day Update

$1,192.10 +8.24

4:21pm EST

The spot gold price rose back above $1,190 after falling in each of the four previous trading sessions. The rebound in the price of gold came amid a relatively quiet day in the currency markets, as the euro fell 0.6% to 1.2885 against the U.S. dollar but did not move considerably higher alongside stocks as the Dow Jones Industrial Average (DJIA) turned a 143-point decline this morning into a 75-point rally by the end of the day.

Gold Price: $1,192.10, +8.24, +0.70%

Silver Price: $17.69, +0.06, +0.34%

US Dollar Index: 82.78, +0.16, +0.19%

Oil Price: $77.44, +0.90, +1.18%

Copper Price: $3.03, +0.09, +2.89%

10-Year Yield: 2.95%, -0.01, -0.44%

gold futures rise alongside metals complex

3:32pm EST

COMEX gold futures for August delivery rose $9.80, or 0.8%, to $1,191.70 per ounce as the yellow metal ended its four-session losing streak. Palladium and copper futures finished higher by 0.9% and 2.2%, respectively, among widespread buying in precious and industrial metals.

gold price turns positive

$1,187.35 +3.49

10:39am EST

The gold price turned positive as morning trading progressed, as the price of gold attemtps to break its four-session losing streak. The strength in gold came alongside a bounce in the euro currency, which recovered a portion of its decline against the U.S. dollar but remained lower by 0.5% at 1.2889.

Eurozone bond issues ease credit fears

$1,181.70 -2.16

8:43am EST

Three of the European Union's most financially vulnerable members sold nearly $13 billion of debt, an indication that investors harbor hope that the region's financial crisis can be successfully managed. Spain, Ireland and Greece sold debt instruments with maturities ranging from thirteen weeks to ten years, with bid-to-cover ratios that showed improvement over the past month. Yield premiums for the three countries also fell to their lowest levels in at least a month.

Gold follows world markets lower

$1,179.65 -4.21

8:23am EST

The gold price traded modestly lower ahead of the open as the markets worldwide slid. Overseas stock bourses traded as much as 1.5% lower than their previous close, and commodities were not faring any better, except for copper which was up a fraction of a cent. U.S. stock futures also pointed to a lower open as investors have become more pessimistic about the state of economic growth despite higher earnings announcements. Treasury rates fell across the entire yield curve, signaling investors' growing worries of a deeper correction in several markets.

End of Day Update

$1,183.86 -10.24

4:20pm EST

The spot gold price for the fourth consecutive day as the yellow metal dropped to its lowest level since May 21. The price of gold is not on track for its worst month since December 2009, when it tumbled 7.1%.

Gold Price: $1,183.86, -10.24, -0.86%

Silver Price: $17.63, -0.22, -1.23%

US Dollar Index: 82.58, +0.10, +0.12%

Oil Price: $76.51, +0.50, +0.66%

Copper Price: $2.95, +0.02, +0.58%

10-Year Yield: 2.97%, +0.04, +1.47%

gold futures decline alongside silver, palladium

2:33pm EST

COMEX gold futures for August delivery retreated $6.30, or 0.5%, to $1,181.90 per ounce as the recent weakness in gold continued. Silver and palladium futures closed lower by 1.4% and 1.1%, respectively, while copper futures advanced 0.3% to $2.94 per pound.

Gold sinks; stocks, commodities decline

$1,182.35 -11.74

10:32am EST

The gold price fell 1%, dropping to $1,181.50 as liquidation pressure intensified in gold futures and gold ETFs, such as the SPDR Gold Trust (GLD). Stocks and commodities also declined after opening higher, as investors worried over the threat of a double-dip recession.

Bearish bets grow on gold and silver

$1,182.10 -11.99

9:17am EST

Susquehanna Financial Group highlighted bearish option trades implemented Friday in the gold and silver sector, specifically on the SPDR Gold Trust (GLD), and the iShares Silver Trust (SLV):

"SLV: (17.49, -2.56%) Opening investors bought roughly 25,000 August 15 (.11d) puts for $0.09 on Friday morning. Silver has not traded below $15 since February, and this would represent almost a 15% move to the downside over the next month. More likely, this investor is playing the wing options to get more bang for the buck on a sell-off and a spike in volatility, and will be looking to sell them to close on any meaningful move lower."

"GLD: (116.67, -1.32%) Investors bought 25,000 August 110 (.20d) puts for $0.72. GLD has not closed under $110 since early April, but these options do seem like a cheap way to play a sell-off and a spike in volatility."

Gold breaks below $1,190

$1,187.92 -6.17

8:31am EST

The gold price traded lower, breaking below the $1,190 mark despite signs of stability in overseas markets and commodities. The U.S. dollar was mixed against the other major currencies and the 10-year Treasury yield rose 1.6 basis points to 2.94%. Earnings and guidance revisions will likely be the primary determinants of market price action this week with a somewhat thin economic report calendar ahead.

End of Day Update

$1,192.75 -16.33

4:33pm EST

The spot gold price finished the week on sour note, tumbling over 1.3% to close lower for the fourth consecutive week. The price of gold broke did however manage to once again close in the $1,192 - $1,211 range, in which it has remained for the entire month of July.

Gold Price: $1,192.75, -16.33, -1.35%

Silver Price: $17.85, -0.46, -2.51%

US Dollar Index: 82.56, +0.19, +0.22%

Oil Price: $75.91, -0.71, -0.93%

Copper Price: $2.97, -0.08, -2.51%

10-Year Yield: 2.93%, -0.06, -2.04%

gold futures post $18 weekly decline

2:14pm EST

COMEX gold futures for August delivery plunged $18.60, or 1.5%, to $1,189.70 per ounce as the yellow metal suffered its worst decline since July 1. For the week gold futures finished lower by $18 per ounce.

paulson rumor adds to gold's woes

$1,190.49 -18.59

12:18pm EST

The gold price has remained near its intra-day low in mid-day trading amid speculation that John Paulson's hedge fund, Paulson & Co., is being forced to liquidate positions due to redemption requests and because of his substantial holdings in Bank of America (BAC), Citigroup (C), and the SPDR Gold Trust (GLD), all of which are down significantly on the day.

euro hits 1.30 - first time since early may

$1,191.61 -17.47

11:21am EST

The euro/dollar currency cross has remained in positive territory despite the move lower in stocks and commodities. It is currently higher by 0.3% at 1.2932, after rising as high as 1.3006 earlier this morning - its highest level in over two months as it has surged from near 1.18 over the past several weeks. As discussed numerous times, the gold price has not correlated nearly as much with movements in the currency markets in 2010 as it did in 2007-2009, however.

consumer sentiment drops

$1,187.35 -21.73

10:07am EST

The University of Michigan Consumer Sentiment index for July came in at 66.5 - well below economists' estimate of 74.5 and the June reading of 76.0. While it is difficult to quantify the impact of this economic data point on the markets, it is nonetheless a troubling sign and the latest in a series of disappointing economic trends in the U.S.

U.S. treasury purchases slow in may

$1,189.91 -19.18

9:42am EST

The U.S. Treasury Department reported that net foreign purchases of U.S. long-term securities rose in May at the slowest pace since last January. Total holdings of equities, notes and bonds increased a net $35.4 billion in May, down from $81.5 billion in April and a record $141.4 billion in March. China was a net seller of U.S. Treasuries in May, after being a net buyer in the previous two months.

Gold sinks, cpi falls

$1,193.73 -15.35

8:38am EST

The gold price sunk below $1,200 ahead of the U.S. equity market open after the Consumer Price Index (CPI) for June came in at -0.1% - below the unchanged reading economists were expecting. The core CPI, which excludes food and energy costs, rose 0.2% - above the 0.1% estimate. The third consecutive month of decline for the CPI will provide the Federal Reserve will further evidence to corroborate its view that inflationary pressures remain tepid.

End of Day Update

$1,209.08 -0.62

4:23pm EST

The spot gold price continued to trade in a tight range, closing near the $1,210 level once again. The euro/U.S. dollar currency cross rallied 1.7% to 1.2940 - its highest level in over two months, after the release of several disappointing economic reports in the U.S. this morning.

Gold Price: $1,209.08, -0.62, -0.01%

Silver Price: $18.31, -0.03, -0.02%

US Dollar Index: 82.42, -1.00, -1.20%

Oil Price: $76.47, -0.30, -0.39%

Copper Price: $3.02, +0.07, +0.23%

10-Year Yield: 2.98%, -0.06, -2.07%

gold, silver futures post modest gains

2:35pm EST

COMEX gold futures for August delivery advanced $1.30, or 0.1%, to $1,208.30 per ounce as the yellow metal continued to hold above the $1,200 level. Silver futures - per the September contract - added $0.07, or 0.4%, to $18.36 per ounce, while copper for September delivery closed unchanged at $3.01 per pound.

Goldman sachs raises gold price forecast

$1,208.72 -0.98

12:21pm EST

Goldman Sachs raised its 12-month gold price target to $1,355 per ounce, citing a continued environment of low interest rates, and concerns over the sovereign debt crisis in Europe.

Gold steady, china data disappoints

$1,210.22 +0.52

8:35am EST

The gold price traded modestly higher ahead of the U.S. equity market open after Chinese second quarter GDP came in at 10.3% - below expectations of 10.5%. The nation's consumer price index for June rose 2.9%, while the producer price index increased 6.4%. Each of these figures also were lower than expected, as economists had predicted an increase of 3.3% and 6.8%, respectively.

End of Day Update

$1,209.71 -1.01

4:19pm EST

The spot gold price traded in a wide range but once again managed to finish within its recent trading range. After rising to as high as $1,217 this morning, the gold price gave back its gains and subsequently stabilized near unchanged levels following the release of the latest Fed minutes.

Gold Price: $1,209.71, -1.01, -0.01%

Silver Price: $18.34, +0.13, +0.71%

US Dollar Index: 83.37, -0.14, -0.17%

Oil Price: $76.98, -0.17, -0.22%

Copper Price: $3.00, -0.02, -0.58%

10-Year Yield: 3.05%, -0.07, -2.34%

gold shows little response to fed minutes

$1,206.80 -3.91

2:18pm EST

The gold price showed little response to the release of the latest Fed minutes, which stated that the Federal Reserve sees no need for further accomodation, and may consider further stimulus if the economic outlook deteriorates. Inflation readings have slowed, slack in labor and resource markets are likely to reduce inflation, and financial markets have become somewhat less supportive of growth in recent months. While gold remained near $1,207, stocks and cyclical commodities gave up their gains, with the S&P 500 turning negative by 4.65 points at 1,090.69.

gold gives up gains

$1,206.85 -3.86

12:23pm EST

Gold returned to negative territory in mid-day trading, while the euro maintained the majority of its gain against the U.S. dollar. In spite of the swings today in the gold price, it remains right in the middle of its recent trading range and likely needs a more significant catalyst for a break to the upside or downside.

gold turns positive, euro hits 3-month high

$1,216.78 +6.06

11:19am EST

The gold price turned positive in mid-morning trading, rising above $1,215 alongside the euro currency, which spiked higher to 1.2767 against the U.S. dollar - its highest level in three months.

sprott files for silver fund ipo

$1,216.78 +6.06

11:06am EST

Sprott Asset Management, the investment firm run by long-time gold bull Eric Sprott, filed a preliminary prospectus for the launch of the Sprott Physical Silver Trust, a closed-end fund that will provide investors with a new way to gain exposure to the price of silver. Sprott launched a Physical Gold Trust earlier this year, which was met with considerable interest among gold investors.

Hoenig warns of Fed-induced imbalances

$1,210.23 -0.48

9:23am EST

Thomas Hoeing, President of the Reserve Bank of Kansas City, told CNBC that the Federal Reserve should not overreact to "every piece of news." Hoenig noted that the Fed has done a "great deal" and monetary policy is "highly accommodative." The hawkish Fed governor warned about the central bank creating further imbalances and acknowledged that exceedingly low interest rates contributed to the recent crisis.

Gold dips, retail sales a mixed bag

$1,206.83 -3.89

8:23am EST

The gold price traded modestly lower ahead of the U.S. equity market open after U.S. retail sales fell 0.5% in June, slightly worse than the 0.4% decline expected by economists. Excluding the 2.3% drop in auto sales, retail sales fell 0.1%, slightly better than the 0.2% decline expected.

End of Day Update

$1,210.71 +10.61

4:20pm EST

The spot gold price once again rebounded back above the $1,200 per ounce level, this time as the euro climbed nearly 1% against the U.S. dollar. The gold price has now closed within a $14 range for the past nine trading sessions, and has not finished two consecutive days in the same direction since June 29 and 30.

Gold Price: $1,210.71, +10.61, +0.88%

Silver Price: $18.21, +0.25, +1.39%

US Dollar Index: 83.57, -0.63, -0.75%

Oil Price: $77.17, +2.22, +2.96%

Copper Price: $3.02, +0.01, +0.23%

10-Year Yield: 3.12%, +0.05, +1.60%

gold futures rise, silver futures post largest gain

2:27pm EST

Gold futures for August delivery on the COMEX finished higher by $14.80, or 1.2%, at $1,213.50 per ounce. Other metals advanced alongside gold, with silver and copper futures posting gains of 1.9% and 0.3%, respectively.

Gold rebounds, portugal downgrade

$1,210.91 +10.81

8:23am EST

The gold price advanced back above $1,200 per ounce Tuesday morning as the euro fell slightly against the U.S. dollar after Moody's cut Portugal's sovereign debt rating by two notches - from Aa2 to A1 - citing further challenges for the nation's deficit issues and muted prospects for economic growth. With this morning's climb the price of gold turned fractionally positive for the week and reduced its monthly decline to $32.74 per ounce.

End of Day Update

$1,200.10 -10.50

4:07pm EST

The spot gold price continued its recent weakness, falling nearly 1% to begin the week. The price of gold is on pace to post its largest monthly decline since December 2009, when it plummeted 7.1%.

Gold Price: $1,200.10, -10.50, -0.87%

Silver Price: $17.96, -0.14, -0.77%

US Dollar Index: 84.24, +0.30, +0.35%

Oil Price: $74.89, -1.20, -1.58%

Copper Price: $3.01, -0.05, -1.56%

10-Year Yield: 3.06%, unchanged

gold, silver, copper futures all decline

2:13pm EST

Gold futures for August delivery on the COMEX closed lower by $11.10, or 0.9%, at $1,198.70 per ounce. Other metals moved lower alongside gold, with silver and copper futures declining 0.9% and 1.5%, respectively.

piigs to restructure public debt?

$1,204.97 -5.62

10:17am EST

Noble Prize-winning economist Robert Mundell told Bloomberg Television that Spain, Portugal and Ireland have a 20% risk of needing to restructure their public debt, while the chances of such a development in Greece are 40%, but only 10% in Italy.

The Columbia University professor, who won the Nobel Prize in 1999 for research that contributed to the development of the euro currency, stated that "I don't think it's going to happen immediately, but it might come in the next year or so."

Gold dips, U.S. dollar rallies

$1,203.43 -7.17

8:38am EST

The gold price dipped back toward $1,200 Monday morning, falling $7.50 to $1,203 per ounce. The U.S. dollar rose versus the euro, trading at 1.257. Despite today's decline in the euro, the common European currency is still 5.8% off its early June lows on the back of increasing confidence that the monetary union will ultimately survive the sovereign debt crisis.

End of Day Update

$1,209.81 +11.31

4:53pm EST

The spot gold price rebounded above the $1,200 level to finish the week with only a fractional decline. The price of gold remains on track for its worst month of 2010, however, after last week's $43 plunge. The euro continued to move higher this week against the U.S. dollar, but did post a modest loss on Friday.

Gold Price: $1,209.81, +11.31, +0.94%

Silver Price: $18.20, +0.32, +1.79%

US Dollar Index: 83.98, +0.16, +0.19%

Oil Price: $76.28, +0.84, +1.11%

Copper Price: $3.07, +0.05, +1.69%

10-Year Yield: 3.05%, +0.02, +0.59%

Gold futures eke out small weekly gain

2:24pm EST

Gold futures for August delivery on the COMEX finished higher by $13.70, or 1.2%, to $1,209.80 per ounce. For the week gold futures rose $2.10, following last week's plunge.

soros op-ed on euro crisis

$1,209.32 +10.82

12:45pm EST

In a New York Times op-ed legendary investor George Soros discussed his outlook on the European sovereign debt crisis and the euro currency. Soros argues that the problems are mainly a function of a banking crisis and the failure of the banks to clean up their balance sheets during and after the 2007-2008 financial crisis. He also chastised Germany for taking a hard stance on the "PIIGS" nations with respect to the terms of the Maastricht Treaty, because of the deflationary consequences that will result.

imf calls on ecb for more action

$1,213.15 +14.65

10:33am EST

The International Monetary Fund (IMF) has called on European policymakers to ensure that their 500 billion euro rescue fund is "fully operational" and to explain how the European Central Bank (ECB) plans to shore up those banks that fail the stress tests. In a statement the IMF noted that "downside risks to the recovery have risen sharply. Bank funding pressures may accelerate the ongoing deleveraging process."

While the IMF did not call for the ECB to initiate a quantitative easing program, its comments indicate the continued severe risk of deflation in the Eurozone - an environment where the policy response is likely to remain particularly favorable for the price of gold.

Korea boosts interest rate to 2.25%

$1,203.32 +4.82

8:54am EST

South Korea's central bank raised its interest rate a quarter point to 2.25%. The increase, the first by the Bank of Korea since August 2008, was unexpected but met with favorable trader reaction as the Korean Won rose 1% against the dollar and 1.2% against the yen. The bank said the Korean economy, the third largest in Asia, continued to expand in the second quarter after an 8.2% increase in the first quarter, the highest growth rate since 2002. The Bank of Korea hike follows others made by Asian nations such as Australia and Malaysia earlier this year.

Gold edges higher heading into the open

$1,202.85 +4.35

8:18am EST

The gold price was higher heading into the session open, and most other markets were, too, with overseas stocks edging higher, commodities making modest gains, and the U.S. dollar mixed against the major currencies. U.S. stock futures were also mixed, pausing after a three-day rally that sent the Dow back above the 10,000 level. With nothing on today's economic calendar, traders may instead be looking to position themselves in anticipation of earnings season which begins in earnest next week.

End of Day Update

$1,198.50 -5.07

4:17pm EST

The gold price closed below $1,200 after mildly positive reports on global growth and U.S. jobless claims imparted renewed confidence to skittish investors. As a result, funds flowed from safe havens like gold and U.S. Treasuries to riskier stocks and commodities. But other news, like the ECB's no-change announcement on its key interest rate, indicates that investor confidence in a strengthening economy may be misplaced. Continuation of hyper-liquidity policies should put a floor under any gold price correction.

Gold Price: $1,198.50, -5.07, -0.42%

Silver Price: $17.97, -0.09, -0.50%

US Dollar Index: 83.66, -0.16, -0.19%

Oil Price: $75.93, +1.86, +2.51%

Copper Price: $3.03, +0.02, +0.58%

10-Year Yield: 3.02%, +0.04, +1.34%

Gold futures close under $1,200

3:34pm EST

COMEX gold futures for August delivery closed $2.80 lower to $1,196.10 per ounce as traders continued to unwind short-euro long-gold positions. The September silver contract was down $0.13 to $17.87 per ounce; October platinum fell $10.00 to $1,516.40 per ounce and palladium for September delivery lost $2.05 to $440.40.

Gold price down but off lows

$1,196.04 -7.53

1:22pm EST

The gold price traded lower in the midday session, but recovered from its intraday low below the $1,190 level. Investors have digested news over that past several weeks that the economic recovery is slowing but may yet avoid the more dire predictions of a double-dip recession. Consequently, investors are moving back into riskier assets as attested to by the 10-year Treasury note yield which cross back above the 3% level. The flow of capital to risk assets has pressured the gold price as "weak hands" and latecomers have been quick to unwind their positions over the past two weeks.

IMF raises growth projection for 2010

$1,197.53 -6.04

8:39am EST

The International Monetary Fund raised its global growth projection for 2010 from 4.2% to 4.6%, but cautioned that financial market turbulence poses risks to economic recovery. The IMF's advice? More quantitative easing in the form of central bank balance sheet expansion. "The overarching policy challenge is to restore financial- market confidence without choking the recovery," the report stated. "The new forecasts hinge on implementation of policies to rebuild confidence and stability, particularly in the euro area."

ECB leaves rate unchanged, gold flat

$1,201.41 -2.16

8:17am EST

The gold price traded flat to slightly down after the European Central Bank left its benchmark interest rate unchanged. The decision to leave rates unchanged was expected and the euro edged higher against the U.S. dollar. Overseas equity markets were trading higher, and commodities gained with copper moving back above $3.00 per pound. U.S. stock futures were flat.

End of Day Update

$1,203.57 +11.44

4:46pm EST

The gold price rallied back, one day after a one-point plunge, to close above the $1,200 mark. Markets nearly everywhere gained after U.S. retail sales showed strong growth, and concerns over the health European banks eased. Only the U.S. dollar and Treasuries failed to join the spree as funds flowed from the safest of havens to riskier assets.

Gold Price: $1,203.57, +11.44, +0.96%

Silver Price: $18.06, +0.22, +1.23%

US Dollar Index: 83.85, -0.23, -0.27%

Oil Price: $74.41, +2.43, +3.38%

Copper Price: $3.04, +0.07, +2.19%

10-Year Yield: 2.98%, +0.05, +1.85%

comex gold futures rebound

2:33pm EST

COMEX gold futures - per the August contract - rose $3.80, or 0.3%, to $1,198.90 per ounce as the gold price rebounded from yesterday's slide. Copper futures posted the largest gains among metals, with a $0.04, or 1.5%, climb to $3.02 per pound, while silver futures advanced $0.08, or 0.1% to $18.00 per ounce.

fed to not raise rates until 2012?

$1,198.48 +6.35

1:08pm EST

Bank of America Merrill Lynch extended the timeframe for when it expects the Federal Reserve to raise the federal funds rate from August 2011 to March 2012. The firm also reduced its U.S. GDP forecast for 2011 and 2012, citing weaker job growth and a slowdown in household consumption, new home construction, and inventories. While the firm did not mention anything about the gold price, the economic environment predicted by the firm has historically been very favorable for the yellow metal.

Euro-zone Q1 GDP up only 0.2%

$1,192.82 +0.69

8:42am EST

Official European Union data showed that the euro-zone economy grew by a scant 0.2% in Q1 2010, before the primary deficit-cutting measures instituted by member countries were fully implemented. German industrial orders unexpectedly fell in May by 0.5%, fanning fears of a double-dip recession in the euro-zone. Consensus estimates projected a half-point increase in May after orders rose by 2.8% in April.

Gold steady, overseas markets down

$1,192.44 +0.31

8:20am EST

The gold price traded near unchanged levels ahead of the U.S. equity market open, after earlier this morning falling below $1,190 per ounce. Stock markets are in the red in Europe and Asia, and futures in the U.S. are pointing to a modestly lower open. Commodities are mixed with crude and copper trading higher, but the silver price was lower. China's foreign exchange agency has reiterated that the country does not view its vast foreign exchange holdings as a lever in political disputes with other countries. The effect of the announcement may be more pronounced given the seasonally thin trading markets are heading into.

End of Day Update

$1,192.13 -19.22

4:25pm EST

The gold price plummeted on the liquidation of positions in favor of the euro and equities. While European markets were up 2-3% for the session, U.S. stock indices opened strong but retreated throughout the trading day. Treasuries rallied and commodities edged higher, but it was difficult to discern a catalyst for much of the activity with the market's vacation season starting in earnest and some trading desks still straggling in following a three-day U.S. holiday weekend.

Gold Price: $1,192.13, -19.22, -1.59%

Silver Price: $17.83, +0.00, +0.00%

US Dollar Index: 84.09, -0.46, -0.54%

Oil Price: $72.24, +0.10, +0.14%

Copper Price: $2.97, +0.06, +1.97%

10-Year Yield: 2.94%, -0.04, -1.21%

comex gold futures slide

1:57pm EST

COMEX gold futures - per the August contract - slid $12.60, or 1.0%, to $1,195.10 per ounce as the gold price was pressured by the stronger euro currency, which was higher by 0.6% against the U.S. dollar at 1.2627 in afternoon trading. Other metals finshed in positive territory, however, with palladium and silver futures posting gains of 3.2% and 0.8%, respectively.

Spain raises $7.6 billion for deficit

$1,192.91 -18.44

11:19am EST

The euro rally resumed after Spain successfully sold $7.6 billion in ten-year bonds, its first syndicated issue since February. After the auction, credit default swaps on the country's debt fell 10.5 basis points to 254.5 as investors exhibited some relief that Spain will be able to fund its deficit. The euro climbed back above $1.26 versus the U.S. dollar and the European stock indices were posting 2-3% gains.

gold tumbles below $1,200

$1,191.76 -19.59

9:56am EST

The gold price extended its decline as morning trading progressed, tumbling below $1,200 per ounce as risk appetites continued to increase on Wall Street. Coming off of last week's $43 slide, the spot gold price is now 5.8% below its all-time high of $1,265 per ounce.

Survey expected to show slower growth

$1,203.75 -7.60

8:39am EST

The ISM non-manufacturing survey is expected to show growth in the service sector for the month of June, but at a slower pace than the past three months. The report is expected to show slight growth in employment, but new orders are expected to decline after hitting a recent high in March.

Gold begins week lower

$1,207.50 -3.85

8:17am EST

The gold price declined this morning, moving toward $1,200 per ounce as the euro gained 0.3% to 1.2594 against the U.S. dollar. The euro's advance came despite a warning from Kenneth Rogoff, Harvard University professor and author of the best-selling "This Time is Different: Eight Centuries of Financial Folly" that China's property market is on the verge of "collapse," stocks and commodities are rising heading into the open on Wall Street.

European stocks rose, with mining and financials among the top gainers - boosted by short covering after a nearly uninterrupted two-week sell-off. The U.S. dollar, which rallied versus the euro in Asia, gave back its gains as risk appetites expanded.

futures dive, China "property collapse"

$1,205.80 - 5.50

10:27pm EST

S&P 500 stock futures dove, falling 9.90 to 1,004.50, after acclaimed author and current Harvard professor, Kenneth Rogoff, told Bloomberg TV that "You're starting to see China property collapse." The gold price fell $5.50 to $1,205.80 per ounce, dropping in concert with stocks as well as economically-sensitive commodities such as oil and copper.

gold & silver forecasts raised

$1,208.86 -2.49

1:03pm EST

Scotia increased their five-year average gold and silver price up 14.7% and 15.2%, respectively. They forecast a range of between $1,100 and $1,500 per ounce between now and January of 2011. The second quarter gold price average was 16.7% higher than Scotia's team projected as the correction they forecasted never materialized.

In a note to clients, Scotia's research team stated, "We believe that the world's economies are still on shaky ground and that investors will still look to hedge the risks seen in the global debt and equity markets by investing in gold and silver, and in gold and silver equities. Longer term, rising inflation on the back of massive stimulus and bailout packages will keep gold and silver prices moving higher and that the US dollar will weaken against other global weakening currencies."

Gold down slightly on low volume

$1,207.25 -4.00

10:32am EST

The gold price traded down slightly, declining $4.00 to $1,207.25 per ounce, on low volume as the U.S. market was closed in observance of Independence Day.

End of Day Update

$1,211.35 +14.16

4:52pm EST

The gold price pared its weekly loss to $43.13 with its rally on Friday. Nonetheless, it was the worst week for the yellow metal since May 17-21 as precious metals posted significant declines amid broad-based liquidation in financial markets.

Gold Price: $1,211.35, +14.16, 1.18%

Silver Price: $17.88, +0.07, +0.39%

US Dollar Index: 84.43, -0.29, -0.34%

Oil Price: $72.14, -0.81, -1.11%

Copper Price: $2.92, +0.04, +2.92%

10-Year Yield: 2.98%, +0.02, +0.78%

gold, copper futures lone advancers

2:29pm EST

COMEX gold futures - per the August contract - crept higher Friday by $1.00, or 0.01%, to $1,207.70 per ounce as the gold price recovered from its $39.83 tumble yesterday. Most metals prices finished lower, but copper futures rose $0.04, or 1.4%, to $2.92 per pound.

muted initial response to jobs data

$1,205.05 +7.86

8:32am EST

The June employment report was a mixed bag, with nonfarm payrolls falling by 125,000 - worse than the 100,000 consensus estimate. Private sector payrolls rose by 83,000 - below the 115,000 gain expected by economists.

On the positive side, the unemployment rate fell to 9.5%, below the 9.7% consensus estimate. The gold price showed a tepid reaction initially to the data, as it held onto a modest gain, while S&P futures initially jumped on the news but quickly gave up those gains.

gold price bounces back above $1,200

$1,204.46 +7.27

8:16am EST

The gold price bounced back above $1,200 Friday morning, recovering a modest portion of yesterday's $46 plunge ahead of the June nonfarm payroll report. After rising for the past three months and the past seven quarters, the price of gold is going to have some substantial work to do to continue its winning streak given the way it began July.

End of Day Update

$1,197.19 -46.45

4:51pm EST

The gold price plummeted on a euro rally that was driven by short covering in a thinly traded market. The euro was up $0.0282 against the greenback in late trading - a 2.3% gain while the U.S. Dollar Index fell $1.50 to $84.52. The dollar was not helped by reports on jobless claims, manufacturing growth and housing sales, all of which managed to fall short of estimates. The news had stock indices plunging, but equities were able to finish well off their session lows. Treasuries eased somewhat with the 10-year note yield increasing back to 2.95%.

Gold Price: $1,197.19, -46.45, -3.73%

Silver Price: $17.85, -0.77, -4.14%

US Dollar Index: 84.52, -1.50, -1.74%

Oil Price: $72.71, -2.92, -3.86%

Copper Price: $2.90, -0.05, -1.68%

10-Year Yield: 2.95%, +0.02, +0.68%

gold price dips below $1,200

$1,199.73 -43.91

2:55pm EST

The spot gold price continued to move lower in afternoon trading, as the yellow metal fell below $1,200 per ounce for the first time since May 25.

COMEX gold, silver post substantial losses

2:17pm EST

COMEX gold futures - per the August contract - finished lower by $39.83, or 3.2%, at $1,206.70 per ounce as the gold price posted its second worst loss of 2010 - behind the 4.4% plunge on February 4. Silver futures - per the july contract - dropped $0.92, or 4.9%, to $17.79 per ounce, its worst decline since its 5.3% fall on May 4.

gold price plunges after reports

$1,209.69 -33.96

12:13pm EST

The Institute for Supply Management index for June came in at 56.2, down from May's 59.7 and short of the estimated 59.0. The numbers show growth in the manufacturing sector, albeit growth at a slower rate. An index reading above 50.0 indicates growth in manufacturing. Components of the index were all lower with new orders showing a 7 point decline to 58.5.

Construction spending retreated slightly in May, falling 0.2% after a rising 2.3% in April. Actual spending beat estimates, however, as the consensus called for a 0.5% decline. Still, construction spending year-over-year fell 8.0% for the month.

The gold price fell sharply minutes after the 10:00 am EDT release of the reports, and stock indices also made new session lows.

gold price slides toward $1,210

$1,211.28 -32.37

11:28am EST

The gold price extended its large decline in mid-day trading, falling toward $1,210 per ounce as the euro surged 1.6% to 1.2441 against the U.S. dollar.

jobless claims spike higher

$1,238.60 -5.05

8:39am EST

Jobless claims for the week ended June 26 spiked to 472,000, an increase of 13,000 over the previous week which was revised upward by 2,000. The gold price slipped further on the release and U.S. stock futures fell lower.

gold pressured as sell-off spreads

$1,241.03 -2.61

8:13am EST

The gold price slipped in overnight trading as the U.S. equity market sell-off that began yesterday afternoon spread to overseas bourses and the commodity complex. Crude oil was down $1.00 to $74.62 and copper broke below $2.90 per pound. The dollar also traded lower against the major currencies ahead of a jobless claims report which is expected to decline by only 5,000 further clouding the employment outlook.

End of Day Update

$1,243.65 +3.97

4:33pm EST

The gold price inched back above the $1,240 level and held on for a modest gain on the day while U.S. stocks reversed in the last hour of trade to finish the session in negative territory with the S&P 500 Index posting its worst quarter since the fourth quarter of 2008. Crude oil slid lower while copper was unchanged. Treasuries were mixed with funds flowing from shorter-term maturities to the longer ones, somewhat flattening the yield curve.

Gold Price: $1,243.65, +3.97, +0.10%

Silver Price: $18.61, +0.09, +0.49%

US Dollar Index: 86.09, -0.04, -0.05%

Oil Price: $75.26, -0.68, -0.90%

Copper Price: $2.92, -0.01, -0.29%

10-Year Yield: 2.93%, -0.01, -0.47%

COMEX gold posts 2.5% monthly gain

2:38pm EST

COMEX gold futures - per the August contract - closed at $1,245.90, up $3.50, or 0.3%, per ounce as the gold price built on yesterday's modest gain. With today's gain gold futures finished the month of June higher by 2.5%, and by 12% for the quarter.

Euro inches up after ECB tender

$1,242.20 +2.53

12:14pm EST

The euro edged higher versus the dollar after the European Central Bank (ECB) announced that European banks required less funding than expected in the ECB's most recent tender. The ECB lent $161.4 billion in three-month funds to banks, far less than the $257 billion consensus estimate. The higher euro signaled receding concerns by investors over European bank funding.

bearish market sentiment picks up

$1,243.59 +3.91

11:09am EST

The weekly Investors Intelligence sentiment survey showed that the bullish percentage was unchanged at 37.0%, while bearish sentiment rose to 33.3% from 31.1%. Advisors classified under correction fell to 25.6% from 27.8% in the prior week. The notable rise in bearish sentiment suggests that the recent weakness in financial markets may be due for at least a pause.

GLD Assets Surge Over $50 billion

$1,235.93 -3.74

10:01am EST

The most widely-held gold bullion ETF, SPDR Gold Trust (GLD), added more than four tons of gold on Tuesday as investors moved funds out of conventional assets and into precious metals. State Street Global Advisors noted that GLD's assets are in excess of $50 billion and have risen 32% thus far in 2010. "GLD is increasingly being used as part of a long-term diversification investment strategy within investors' portfolios in a variety of market cycles currently playing out worldwide," said James Ross, senior managing director at State Street Global Advisors.

equities hit historically oversold levels

$1,236.86 -2.81

9:16am EST

The TRIN/ARMS index, a closely followed stock market indicator that measures up/down stocks divided by up/down volume on the New York Stock Exchange, reached 5.88 during yesterday's sell-off - its fifth highest since the start of 2007. The U.S. equity market is therefore at oversold levels reached only during the Bear Stearns crisis, the Lehman Brothers bankruptcy, the March 2009 lows, and the "flash crash" of last month.

chicago PMI to show business growth

$1,241.05 +1.38

8:34am EST

The Chicago Purchasing Managers Index is due out later this morning and is expected to come in unchanged from May's 59.7. Index readings above 50 indicate business sector expansion. June estimates are in line with the May numbers primarily because of a strong new-orders number released last week.

stock futures pull back on adp number

$1,240.86 +1.19

8:23am EST

The ADP June employment report showed only 13,000 added, coming in far below the estimated 60,000. The May number was revised upward by 2,000 to 57,000. U.S. stock futures, which had been trading in positive territory, fell back to unchanged on the release, but the gold price showed little reaction.

gold edges higher, markets cautious

$1,241.99 +2.32

8:14am EST

The gold price edged higher in premarket trading with the U.S. dollar mixed against the major currencies and Treasury yields moving back up, as the risk aversion which sparked a broad market sell-off yesterday has abated somewhat. European stock markets traded higher and commodities began to recover, though Asian markets continued to slip. The market's first look at June jobs is expected to show the economy added 60,000 jobs for the month. In May the ADP employment report showed 55,000 jobs gained.

End of Day Update

$1,239.67 +1.31

4:24pm EST

The gold price withstood a broad-based market sell-off, edging modestly higher for the session. Stock indices world-wide shed 3% to 5% on fears of a slowing economy, while commodities plunged in anticipation of weakening demand. Investors headed for the safety of U.S. Treasuries with the yield on the 10-year note breaking below the 3% level. The gold price sold off at the open but by late morning the trend reversed with price of gold nearing a session high of $1,245.

Gold Price: $1,239.67, +1.31, +0.10%

Silver Price: $18.52, -0.26, -1.39%

US Dollar Index: 86.10, +0.42, +0.49%

Oil Price: $75.43, -2.82, -3.60%

Copper Price: $2.93, -0.16, -5.03%

10-Year Yield: 2.96%, -0.06, -2.0 9%

COMEX gold rises, copper plunges

2:34pm EST

COMEX gold futures - per the August contract - finished at $1,242.40, up $3.80, or 0.3%, per ounce after initially falling to as low as $1,227.50 this morning. Silver futures - per the July contract - closed lower by $0.08, or 0.4%, at $18.59, while copper futures plunged $0.16, or 5.2%, to $2.91 per pound.

gold price turns positive

$1,244.80 +6.43

12:24pm EST

The gold price turned positive in mid-day trading, rising back above $1,240 per ounce as investors sought out the safety of the yellow metal amid broad-based liquidation on Wall Street.

poor confidence number fuels sell-off

$1,232.77 -5.60

10:31am EST

The Conference Board's measure of consumer confidence fell from a revised 62.7 in May to 52.9 in June - well below the 62.5 median estimate in a Bloomberg News survey of 71 economists. The significantly worse than expected number put further pressure on stocks and cyclical commodities, while the gold price underwent only a small relative decline.

calculation error in chinese data

$1,235.99 -2.37

9:23am EST

China's Conference Board reported a calculation error, stating that the country's April leading economic index was only up 0.3% versus the original 1.7% reported on June 15. Slower Chinese growth would lead to less demand for commodities and consequently, the prices of oil and copper are lower by 2.4% and 3.1%, respectively, this morning.

Forecast: consumer confidence down

$1,235.90 -2.46

8:39am EST

The Conference Board's report on consumer confidence is expected to show a 0.5 decline to 62.8, after increasing the three previous months including a sharp 5.4 points in May. Weak jobs growth and faltering housing numbers have combined to discourage consumers, who account for 70% of the U.S. economy. The report is due out at 10:00am EDT.

Gold lower on recovery news

$1,234.28 -4.08

8:21am EST

The gold price traded lower in premarket activity as investors fled risk assets after reports of slowing economic recovery in Japan and workers in Greece staged a walk-out in protest of the country's deep budget cuts. European stock indices were trading down over 3% in some markets and commodities also fell, with copper dipping back below the $3 level. The euro pulled back under$1.22, and U.S. stock futures were sharply lower. Treasuries rose with the 10-year note yield breaking below 3.00% to 2.99%.

End of Day Update

$1,238.36 -16.12

4:41pm EST

The gold price came within $2 of its record high of $1,265 this morning, but quickly turned lower, falling below $1,240 per ounce amid liquidation throughout the precious metals sector. The next likely catalysts for the gold price will be tomorrow's consumer confidence report, followed by the ADP employment data on Wednesday, and the early release of the monthly nonfarm payrolls report on Thursday because of the holiday-shortened session on Friday.

Gold Price: $1,238.36, -16.12, -1.28%

Silver Price: $18.78, -0.33, -1.73%

US Dollar Index: 85.70, +0.39, +0.45%

Oil Price: $78.09, -0.77, -0.98%

Copper Price: $3.09, -0.02, -0.69%

10-Year Yield: 3.02%, -0.09, -2.89%

COMEX gold, silver tumble

2:37pm EST

COMEX gold futures - per the August contract - closed at $1,238.60, plunging $17.60, or 1.4%, per ounce after rising as high as $1,263.60 this morning. Silver futures - per the July contract - finished lower by 2.3%.

gold gives up gains, turns lower

$1,252.39 -2.09

10:49am EST

The gold price gave up its gains as morning progressed. After rising to as high as $1,263 - within $2 of its all-time high, the spot price of gold retreated despite a 0.5% decline in the euro/U.S. dollar currency cross.

economic data mixed, gold rises

$1,262.04 +7.56

10:17am EST

The Commerce Department that consumer purchases rose 0.2% in May - slightly above the 0.1% median estimate of 61 economists in a Bloomberg survey. Incomes rose 0.4%, below the 0.5% advance expected by economists.

The mixed economic data is unlikely to be much of a catalyst in changing the Federal Reserve's outlook that the economy requires the continued use of easy monetary policies to maintain the recovery - a bullish factor for the gold price, which has increased over 0.5% this morning to within $3 of its all-time high.

Gold price holding latest gain

$1,256.11 +16.63

8:35am EST

The gold price traded near unchanged to open the week, rising $1.00 to $1,255.50 on light volume. After hitting a new all-time high last week on fears of a double-dip recession, the price of gold is within 3% of $1,300 per ounce. Investors and traders will be watching economic data carefully for signs that the economy is on a stronger footing. Deflation fears have sparked renewed talk of quantitative easing and have led to the recent surge in the gold price.

End of Day Update

$1,254.48 +14.54

5:32pm EST

The gold price soared within $3 of a record closing after a downward revision to Q1 GDP cast increased fears of a double dip recession. Stocks finished mix, but commodities made strong gains with copper continuing its tear, rising nearly $0.20 for the week. Bonds also gained, as concerns over the recovery had investors seeking cover.

Gold Price: $1,254.48, +14.54, +0.26%

Silver Price: $19.12, +0.42, +2.25%

US Dollar Index: 85.31, -0.45, -0.52%

Oil Price: $79.14, +2.63, +3.44%

Copper Price: $3.11, +0.08, +2.73%

10-Year Yield: 3.11%, -0.03, -0.82%

COMEX gold futures soar

2:34pm EST

COMEX gold futures contracts for August delivery closed at $1,256.20, gaining $10.30 per ounce after rising as high as $1,259.50. The silver contract for July delivery rose $0.37 to $19.11 per ounce, while the July contract for platinum gained $10.20 to close at $1,571.70 per ounce.

Largest gold coin fetches $4 million

$1,254.84 +14.89

2:19pm EST

A Maple Leaf gold coin - the world's largest - sold for $4.02 million at auction in Vienna, Bloomberg.com reported. The purchaser, Oro Direct Sale S.L.U., said it bought the coin to exhibit to clients. The pure gold coin weighs 3,215 ounces (100 kilograms), and is 21 inches in diameter. "We believe that this is a way to demonstrate our opinion that gold is the ultimate store of wealth," said Oro Direct spokesman Michael Berger. "As long as central banks continue to print enormous amounts of paper money, we believe physical gold will be a fantastic investment."

Gold extends gains; GDP revised down

$1,255.31 +15.37

1:17pm EST

The gold price extended its gains at midday trading above the $1,255 level. Investors continued to flock to the metal amid further signs of economic sluggishness. The Commerce Department revised first quarter gross domestic product downward to 2.7% growth from the previous 3.0% reading.

Poor coordination may cost 30M jobs

$1,254.89 +14.94

12:02pm EST

A report prepared by the International Monetary Fund (IMF) ahead of the Group of 20 summit in Toronto, Canada, warns that poorly-coordinated fiscal and monetary policies among nations could cost as much as $4 trillion in economic output and as many as 30 million jobs worldwide over the next few years. The members of the G20 are at odds going into the summit over how fast and far some countries should cut public spending, and how strict new capital requirements should be for the world's major banks.

Finreg bill headed to vote

$1,251.51 +11.56

8:07am EST

Leaders from both houses of Congress voting along party lines reached agreement on financial regulation overhaul legislation that will enable the country's banks to keep operating their financial derivatives businesses. Formulated in response to the 2008 financial crisis, the legislation calls for a consumer financial protection bureau, establishes new rules for previously unregulated financial instruments, and lays down a process for liquidating "too big to fail" firms. Final voting on the package is expected in time to get the bill to President Obama by July 4.

gold higher ahead of G-20 summit

$1,245.95 +6.01

7:50am EST

The gold price moved higher in overnight trading as the euro slid, and overseas markets also eased ahead of the G-20 summit convening in Toronto, Canada. House and Senate lawmakers also reached agreement overnight on a comprehensive financial regulation package including a compromise that will allow banks to keep their derivative businesses. Energy and base metals were also down, but U.S. stock futures reversed losses following the finreg announcement.

End of Day Update

$1,239.94 +3.24

4:28pm EST

The gold price renewed its climb toward last week's all-time high price as investors shunned stocks after the jobless claims report showed little to no improvement in employment and durable goods orders slid more than expected primarily due to listless consumer demand. Energy and base metals, however, were flat to slightly up and the 10-year note yield ticked up by 1 basis point, indicating that views on the economy are not uniformly pessimistic. All the more reason to view the recent trading action in the gold price as confirmation that gold's status as an alternative currency continues to take hold.

Gold Price: $1,239.94, +3.24, +0.26%

Silver Price: $18.70, +0.17, +0.92%

US Dollar Index: 85.76, -0.02, -0.03%

Oil Price: $76.27, -0.08, -0.10%

Copper Price: $3.02, +0.07, +2.22%

10-Year Yield: 3.12%, +0.01, +0.32%

gold to rise on renewed QE?

$1,241.43 +4.73

3:42pm EST

Credit Suisse raised its gold price forecast to $1,145 from $1,025 in 2010, and to $1,105 from $1,000 in 2011. In the following three years the firm predicted the gold price will average $1,180 in 2012, $1,220 in 2013, and $1,300 in 2014.

In a note to clients Credit Suisse wrote that "Our global equity strategy team believes their is an 80% chance of a renewal of quantitative easing either owing to the sovereign credit crisis or a double dip occurring in which case the current macro environment will likely reappear."

COMEX gold futures rebound

2:24pm EST

After opening lower, COMEX gold futures for August delivery quickly turned positive and climbed $11.00 to close at $1,245.90 per ounce. Silver and copper futures advanced 1.4% and 2.4%, while platinum and palladium futures fell 0.2% and 0.1%, respectively.

gold sentiment remains tepid

$1,245.75 +9.04

1:03pm EST

The latest Hulbert Gold Newsletter Sentiment Index (HGNSI) came in at 37.8% - considerably above last week's reading of 30.6%, but far below readings of 60.9% in January and 68% in December 2009, when gold first surpassed $1,200 per ounce. The HGNSI measures the average recommended gold market exposure among a subset of short-term gold timing timers tracked by the Hulbert Financial Digest.

From a contrarian perspective, the fact that bullish sentiment on gold remains relatively modest with the yellow metal within 2% of its all-time high is a positive sign for gold.

gold turns positive, euro nearly flat

$1,244.34 +7.63

10:48am EST

The gold price turned positive as morning trading progessed, rising above $1,240 despite a relatively tame day so far in the currency markets. The euro is currently lower by 0.1% at 1.2318 against the U.S. dollar. Today is options expiration for gold futures, however, so moves in the gold price can be exaggerated for various reasons.

May Durable Goods report mixed

$1,233.34 -3.37

8:50am EST

The report on durable goods orders in May contained mixed news for investors with the headline number coming in at -1.1% versus a consensus estimate of -0.5%. Excluding the transportation component, however, durable goods orders rose 0.9%. The numbers show that the manufacturing sector is strengthening, but the consumer - who accounts for 70% of the economy in the U.S. - is still struggling due to the employment outlook and debt overhang.

Jobless claims decline slightly

$1,232.30 -4.40

8:37am EST

Weekly jobless claims fell in the week ended June 19 by 3,000 to 457,000, better than the consensus of 465,000 but still considered too weak to indicate an improving employment picture. The gold price came off its premarket low on the release, and stock futures were lifted but still pointed to a negative open.

Markets, gold down ahead of reports

$1,229.68 -7.03

8:17am EST

The gold price slid in overnight trading, as investors headed for the safety of bonds ahead of reports on jobless claims and durable goods orders. Both numbers are expected to disappoint, with claims unable to move from the range it has been stuck in recent weeks, and the durable goods orders expected to decline from a strong but aberrant April number. Overseas equities and U.S. stock futures were down as was crude oil. Investors are also fleeing the euro which has helped the U.S. dollar.

End of Day Update

$1,236.71 -4.14

4:47pm EST

The gold price closed lower but rebounded from the session's lows, recovering nearly $5 in the last hour of trading. The universally expected FOMC announcement of "no change" on interest rate policy had caused swings in the equity markets heading into the last hour, but stocks finished the day as they had started it - in modestly negative territory. Commodities also finished lower, as did the U.S. dollar, but Treasuries gained on the day.

Gold Price: $1,236.71, -4.14, -0.33%

Silver Price: $18.55, -0.27, -1.44%

US Dollar Index: 85.80, -0.30, -0.35%

Oil Price: $75.85, -2.00, -2.57%

Copper Price: $2.96, -0.05, -1.83%

10-Year Yield: 3.11%, -0.06, -1.68%

COMEX gold futures close lower

2:40pm EST

COMEX gold futures for August delivery shed $6.00 to close at $1,234.80 per ounce, but trimmed earlier losses that had the contract trading as low as $1,227.10. The July silver contract declined $0.44 to $18.45, while July platinum lost $23.40 to $1,569.60 per ounce.

fed leaves rates unchanged

$1,234.73 -6.11

2:15pm EST

The Federal Reserve's Federal Open Market Committee (FOMC) left interest rates unchanged and left in the "extended period" language with respect to keeping rates at record lows.

bullish market sentiment on the rise

$1,234.73 -6.11

1:56pm EST

Bullish sentiment on the broader market has rebounded in recent weeks, as evidenced by the latest Investors Intelligence sentiment survey. The bullish percentage climbed to 41.1% from 37.0% last week, while bearish sentiment dropped to 31.1% from 32.6%. Advisors classified under correction declined to 27.8% from 30.4% in the prior week.

From a contrarian perspective, the increase in bullish sentiment is a negative factor that indicates the rally in stocks and cyclical commodities over the past several weeks is at least due for a pause, and perhaps a more meaningful correction.

gold price drops toward $1,225

$1,226.89 -13.96

10:33am EST

After opening near unchanged levels, the gold price quickly declined toward $1,225 as investors liquidated positions in the yellow metal ahead of the Fed decision this afternoon. After rising for eight of the past nine weeks, the gold price is on pace for its third worst week of 2010.

SPDR Gold ETF holdings keep rising

$1,241.31 +0.46

8:51am EST

Bullion holdings in the SPDR Gold Trust ETF (GLD), the largest physical gold ETF, rose 5.17 metric tons to a record 1,313.14 tons yesterday, according to information posted on company's website. The total dollar value of gold holdings in the trust is nearly $52.2 billion. Despite trading near its record high, gold continues to be sought by investors wary of financial turmoil whether in the form of inflation, deflation, currency debasement, or a protracted economic slowdown.

gold flat ahead of FOMC announcement

$1,242.86 +2.02

8:29am EST

The gold price was flat in early trading while the U.S. dollar traded mixed against the major currencies. Overseas stock markets also traded lower, but U.S. stock futures were pointing to a higher open after the major indices fell 1.5% late in the previous session on another poor housing report. Commodities also slipped lower ahead of an FOMC announcement on interest rates which all observers expect will keep the current zero-rate policy in place "for an extended period."

End of Day Update

$1,240.85 +9.47

4:46pm EST

The gold price rebounded from yesterday's plunge, recovering more than a third of Monday's losses. The price of gold opened modestly stronger and subsequently moved higher after the worse than expected May existing home sales report.

The next catalyst for the yellow metal will be tomorrow's Federal Open Market Committee (FOMC) meeting, where Chairman Bernanke and the Federal Reserve are widely expected to reitate the same dovish stance on monetary police that has been in place since the onset of the financial crisis nearly three years ago.

Gold Price: $1,240.85, +9.47, +0.77%

Silver Price: $18.84, +0.11, +0.59%

US Dollar Index: 86.12, +0.14, +0.16%

Oil Price: $77.63, -0.98, -1.25%

Copper Price: $2.98, +0.02, +0.61%

10-Year Yield: 3.16%, +0.09, +2.71%

gold futures finish up a dime

2:37pm EST

COMEX gold futures - per the August contract - gained $0.10 to close at $1,240.80 per ounce. The large difference between gold futures and the spot price of gold today is because of the approximately $9 decline in gold that occurred following yesterday's COMEX close. As such, while the spot price is currently up $8.17 at $1,239.55 per ounce, the August futures contract finished higher by just a dime.

existing home sales disappoint

$1,240.33 +8.95

10:33am EST

The latest economic data to come in below expectations was May existing homes sales, which unexpectedly fell 2.2% to a 5.66 million annual rate - less than the 6.12 million median estimate from a Bloomberg News survey of 74 economists. The Federal Reserve will be sure to add this data to the growing list of evidence that the economic recovery has lost a considerable amount of steam, and therefore requires the continued use of easy monetary policies.

$23 silver by 2011?

$1,235.95 +4.57

10:04am EST

Commerzbank AG published a report predicting that the price of silver may reach $23 per ounce in 2011 as investors seek a cheap alternative to gold, and as the global economic recovery boosts industrial demand. The price of silver hit a multi-decade high of $20.92 per ounce in March 2008 amid the Bear Stearns crisis, and has not reached the $23 level since the early 1980s.

Eugen Weinberg, head of commodity research at the firm, called silver "gold's little brother" in a report, and cited the current ratio of gold to silver, at 65 - versus an average of 59 over the past several years - as a reason to expect higher silver prices moving forward.

gold and silver price outlook raised

$1,239.36 +7.98

9:42am EST

Merrill Lynch raised its forecast for the gold price and silver price over the next three years. In a reserach note, analysts predicted the average gold price will be $1,200 this year, $1,350 in 2011, and $1,400 in 2012 - up from $1,110, $1,179, and $1,109 per ounce, respectively. As for silver, Merrill stated that it sees the silver price averaging $18, $20.25, and $21 per ounce in 2010, 2011, and 2012, respectively.

The firm stated that its positive outlook on gold and silver is "heavily influenced by the current macroeconomic environment," and that the following three factors will have a "significant impact" on precious metals: central banks have eased monetary policy reflected in sharp rises of money supply, Government debt has soared to make up for the private sector consumption short-fall, and potential GDP growth rates have come under pressure.

Gold edges up, other markets pressured

$1,236.76 +5.38

8:50am EST

The gold price was modestly higher in premarket trading after a 2% plunge the previous session, while the euro extended the slide that began midway through Monday's trading. Overseas stock markets are also trading lower in the wake of a sharp but fleeting rally that followed China's announcement that it would allow greater flexibility in the valuation of its currency. Energy and base metals were also trading lower as the current of capital has once again reversed and is flowing toward safer assets. The 10-year T-note yield was down 4.2 basis points in early trading.

End of Day Update

$1,231.38 -24.36

4:25pm EST

After reaching a new all-time high of $1,265 per ounce this morning, the gold price experienced a considerable sell-off that saw the yellow metal fall over $30 from its record high. The silver price followed gold lower, while industrial metals posted gains after China's decision to gradually remove its currency peg to the U.S. dollar fueled a rebound in cyclical commodities.

Gold Price: $1,231.38, -24.36, -1.94%

Silver Price: $18.73, -0.46, -2.40%

US Dollar Index: 85.98, +0.28, +0.32%

Oil Price: $77.43, +0.25, +0.32%

Copper Price: $2.95, +0.05, +1.65%

10-Year Yield: 3.25%, +0.02, +0.68%

gold futures continue lower after comex close

2:36pm EST

COMEX gold futures - per the August contract - plunged $17.60, or 1.4%, to close at $1,240.70 per ounce as the yellow metal underwent its worst day since May 19. Following the close of pit trading, gold futures continued to fall in electronic trading - reaching as low as $1,235.10 per ounce.

gold, silver extend declines

$1,242.49 -13.25

12:57pm EST

Gold extended its decline in mid-day trading, as the yellow metal underwent a sharp move lower, from above $1,250 to as low as $1,238 before recovering a few dollars. Volume on the COMEX reached its highest levels of the day during the sell-off, a bearish sign for the yellow metal.

The silver price moved lower alongside gold, with COMEX silver futures - per the July contract - falling from a high of $19.44 to as low as $18.66 per ounce. The weakness in precious metals came as the U.S. dollar rebounded against the euro. After rising to as high as 1.2469 this morning, the euro/dollar currency cross was lower by 0.2% at 1.2344 in mid-day trading.

gold price gives up gains

$1,253.49 -2.26

11:12am EST

The gold price turned negative as morning trading progressed. After reaching a new record high of $1,265 in overnight trading, gold has moved lower, while the euro/U.S. dollar currency cross has given up the large majority of its gains but remains slightly higher, up 0.2% to 1.2395.

Yuan revaluation to proceed gradually

$1,255.97 +0.23

8:51am EST

The U.S. dollar slipped against the major currencies as the week began and had fallen to 6.79 Chinese yuan in early trading after the Chinese government announced that it would permit more flexibility in the valuation of the country's currency. The previous policy had pegged the yuan at 6.83 to the U.S. dollar. Rather than an instantaneous revaluation, however, Chinese officials are easing into the process of allowing the currency to seek it own level. RBC Capital Markets forecasted that the dollar could fall to 6.50 yuan by year-end.

Gold climbs after China announcement

$1,259.29 +3.62

8:21am EST

The gold price moved higher over the weekend after an announcement from China that the country would permit greater flexibility in the valuation of its currency. The U.S. dollar is trading lower against most major currencies in the aftermath, even though most analysts see more symbolism than change in policy direction in the announcement. Still, most markets have welcomed the news with overseas stocks and commodities rising. U.S. stock futures also traded sharply higher ahead of the open, but Treasury yields spiked on the ensuing capital reallocation.

End of Day Update

$1,255.74 +9.88

4:24pm EST

The gold price set records for the second straight day hitting intraday highs above the $1,263 level in both the spot market and the COMEX front-month futures contract. Action in the gold price has become completely divorced from the traditional dollar/euro cross rate, and in recent sessions appears to have risen without any technical catalysts. Investors have increasingly recognized the fundamental value of gold in an economic environment awash in liquidity and a political/social environment that ignores the necessity for the painful remedies required to restore health to the global financial system.

Gold Price: $1,255.74, +9.88, +1.24%

Silver Price: $19.18, +0.45, +2.40%

US Dollar Index: 85.60, -0.09, -0.11%

Oil Price: $77.38, +0.59, +0.77%

Copper Price: $2.91, -0.02, -0.58%

10-Year Yield: 3.22%, +0.03, +1.03%

gold futures post 2.6% weekly gain

2:47pm EST

COMEX gold futures - per the August contract - finished at another record closing high of $1,25.30 per ounce, up $9.60, or 0.8%. Gold for August delivery hit a new intra-day high of $1,263.70 per ounce, and posted a weekly gain of 2.3%.

bullish sentiment on gold remains tepid

$1,259.20 +13.33

11:03am EST

According to the latest reading of the Hulbert Gold Newsletter Sentiment Index (HGNSI), the average recommended gold market exposure among a subset of short-term gold timing timers tracked by the Hulbert Financial Digest is at 30.6%. This compares to readings of 60.9% in January and 68% in December 2009, when gold first surpassed $1,200 per ounce.

From a contrarian perspective, the fact that positive sentiment on gold remains tepid is a bullish sign for the yellow metal.

Obama calls for more global stimulus

$1,258.10 +12.24

8:50am EST

U.S. President Barack Obama called on other world leaders to focus on putting the world economy back on track in a letter released on the eve of the G-20 economic summit in Toronto. Obama's letter warned "it is critical that the timing and pace of consolidation in each economy suit the needs of the global economy, the momentum of private sector demand, and national circumstances." Obama was referring to the need for countries where debt problems are not as urgent - Germany, France, and England - to continue to drive their economies with public investment until private demand returns.

Without mentioning the country by name, Obama also called on China to reduce heavy reliance on exports and to allow its currency to appreciate, noting "market-oriented exchange rates are essential to global economic vitality."

Gold Sets a record high overnight

$1,256.52 +10.66

8:22am EST

The gold price set new highs in overnight trading moving above the $1,256 level despite little change in the U.S. dollar against the other major currencies. World stock markets also traded higher but crude oil and copper were in retreat ahead of the G-20 economic summit which will convene in Toronto this weekend. The impressive rise in the gold price over the last few sessions lends additional credence to the contention that gold has become a major currency in its own right as governments continue to pursue hyper-liquidity policies that are debasing their currencies.

End of Day Update

$1,245.86 +15.31

4:44pm EST

Gold set new highs for closing prices in both the spot market and front-month futures contract with the COMEX August contract finishing at $1,248.70 per ounce. A series of poor economic reports - beginning with an unexpected increase in jobless claims and continuing with a decline in regional manufacturing - sent investors in search of safer assets like gold and U.S. Treasuries. A favorably received auction of Spanish government bonds likely prevented a rout, however, and stocks rallied to finish with modest gains after spending much of the day in negative territory.

Gold Price: $1,245.86, +15.31, +1.24%

Silver Price: $18.73, +0.24, +1.30%

US Dollar Index: 85.65, -0.43, -0.50%

Oil Price: $76.62, -1.05, -1.35%

Copper Price: $2.94, -0.07, -2.44%

10-Year Yield: 3.20%, -0.06, -1.84%

gold futures finish at record closing high

1:29pm EST

COMEX gold futures - per the August contract - finished at a record closing high of $1,248.70 per ounce, up $18.20, or 1.5%. However, gold futures did not surpass their intra-day high of $1,254 - reached on May 12 of this year.

bnp raises gold price forecast

$1,243.12 +12.57

9:46am EST

BNP Paribas raised its 2010 gold price forecast to $1,190 per ounce, up from $1,150 previously. The Franch-based investment bank also raised its 2010 average price estimate on silver to $18 from $15.90 per ounce, on platinum to $1,585 from $1,510 per ounce, and on palladium to $465 from $420 per ounce.

jobless claims, inflation spur gold

$1,243.17 +12.62

9:00am EST

The gold price moved higher after the Labor Department reported that weekly jobless claims rose 12,000 to 472,000 for the week ended June 12, confounding administration officials and the analysts who forecast a 6,000-claim drop. The previous week's number was revised upward from 456,000 to 460,000. Continuing claims rose slightly after a large decline of 234,000 the previous week.

Inflation edged only slightly higher in May, with the core consumer price index inching up 0.1%, but the "headline rate" which includes energy and food expenses dropped 0.2%. Both figures were in line with estimates. The combination of continued bad news on the employment front and low inflation indicators spell a continuation of the Federal Reserve's zero-rate policies - and a tailwind for the gold price.

Gold price higher on european woes

$1,240.87 +10.32

8:33am EST

The gold price traded higher after a European Central Bank (ECB) official warned that budget cuts instituted to stem the debt crisis on the continent may slow economic growth. Still, analysts predict that the average deficit among the 16 nations in the European Union may grow to 6.6 percent of GDP this year before it pulls back to 6.1% the next. The ECB also kept its 1% reference rate unchanged. Central banks around the world are boxed in by the European debt crisis, unable to pursue normalized monetary policy for fear of sending the euro-zone into a tail spin that would drag the rest of global economy down with it.

End of Day Update

$1,230.55 -6.27

4:26pm EST

The gold price gave back part of yesterday's strong gains during a trading session that saw most markets mixed. The U.S. dollar and Treasuries gained while stocks rebounded from pre-market losses to finish unchanged. Crude oil advanced, but copper and silver retraced as economic reports released today had good news/bad news elements to them that gave investors little visibility on the strength or direction of the economic recovery.

Gold Price: $1,230.55, -6.27, -0.51%

Silver Price: $18.51, -0.05, -0.27%

US Dollar Index: 86.15, +0.17, +0.20%

Oil Price: $77.62, +0.68, +0.88%

Copper Price: $3.00, -0.02, -0.63%

10-Year Yield: 3.26%, -0.04, -1.33%

COMEX gold futures slide

3:13pm EST

COMEX gold futures for August delivery closed $3.90 lower to $1,230.50 an ounce, yielding a portion of yesterday's $9.90 gain. July silver futures also fell, losing $0.12 to $18.46, and platinum for July delivery sank $10.50 per ounce to $1,567.50.

Russia diversifying out of U.S. dollars?

$1,232.17 -4.65

12:27pm EST

At an event hosted by Bloomberg in Moscow last evening, First Deputy Chairman of Russia's central bank - Alexei Ulyukayev - stated that the country is considering diversifying its international reserves away from the U.S. dollar and euro and into the Australian and Canadian dollars. Last November Ulyukayev revealed that Russia's reserves are 47% in U.S. dollars, 41% in euros, 10% in British pounds, and 2% in Japanese yen.

This move to diversify its reserves comes after a significant drop in the euro/U.S. dollar currency cross over the past seven months, and speaks to growing skepticism of paper currencies around the world.

PPI drops less than expected

$1,231.82 -5.01

10:13am EST

The Producer Price Index (PPI) fell in May by a seasonally adjusted 0.3% - the largest drop since February - but less than the 0.6% expected by economists. The core PPI rate, which excludes food and energy costs, increased 0.2% - above the 0.1% expectation.

While this data indicates that disinflation and/or deflation concerns may not be warranted as much, the figures are still tepid at best. Moreover, they will provide the Federal Reserve with further evidence to support its view that inflationary pressures remain low - thus supporting the easy monetary policies that have indirectly buoyed the price of gold.

Spain's economic picture darkens

$1,236.66 -0.16

8:41am EST

The Bank of Spain reported that signs of an economic recovery remain weak but added that austerity measures to reduce the country's deficit are essential, even if they hurt short-term growth. The yield spread on 10-year Spanish bonds over benchmark German bunds rose 13 basis points to 223.5 basis points, as the European Union, the International Monetary Fund, and the U.S. Treasury prepared a 250 billion euro rescue package for the country. The Spanish government is set to announce major labor market reforms later in the day. Unemployment in the country is running at 20%.

Gold Flat on dollar strength

$1,234.97 -1.85

8:21am EST

The gold price traded modestly lower as the dollar strengthened against most major currencies, ending a rally in the euro that extended over several sessions. European stock markets were mixed as debt crisis concerns - this time over Spain - are again damping hopes over a European economic recovery. The pessimism has spread to U.S. markets where futures indicate a lower opening. Purchase applications for mortgages were up 7.3% for the week ended 6/11, but the report said it was unclear if the gain - the first since the end of the second-round stimulus - represents a blip or a gathering rebound in housing.

End of Day Update

$1,236.82 +13.85

4:30pm EST

The gold price surged nearly $14 to close above the $1,236 level amid a mixed financial picture which featured reports of an improving economy along with dire predictions. Aircraft maker Boeing Co. announced it was boosting production and the New York Fed's general economic index showed an eleventh consecutive month of growth. But French financial firm AXA predicted the "disintegration" of the European Union and bond investment firm PIMCO warned of "stress" on the U.S.'s AAA debt rating. Nearly all markets gained on the day with the S&P 500 Index closing at its highest level in four weeks. Only the U.S. dollar and Treasuries failed to participate in the rally.

Gold Price: $1,236.82, +13.85, +1.13%

Silver Price: $18.60, +0.37, +2.03%

US Dollar Index: 85.96, -0.56, -0.64%

Oil Price: $77.04, +1.92, +2.56%

Copper Price: $3.05, +0.03, +1.11%

10-Year Yield: 3.31%, +0.06, +1.69%

gold futures rise alongside entire metals complex

1:58pm EST

COMEX gold futures - per the August contract - closed higher by $9.90, or 0.8%, at $1,234.40 per ounce. The entire metals sector - both precious and industrial metals - finished higher, with palladium climbing $12.95 to $475.55 per ounce and copper gained $0.0125 to $3.0045 per pound.

Zero fed rates through 2011?

$1,233.32 +10.35

12:45pm EST

A researcher at the Federal Reserve Bank of San Francisco says that the Fed's zero interest rate policy (ZIRP) may remain in place through 2011. Based upon statistical relationships between inflation, the unemployment rate, and the policy rate - then applying those historical relationships to the Fed's own median economic forecasts - the "recommended period of a near-zero funds rate would end at the beginning of 2012," the researcher, Glenn Rudebusch, wrote in the Bank's Economic Letter released on Monday.

gold rises, pimco warns on u.s. aaa rating

$1,233.34 +10.37

12:02pm EST

The gold price extended its gains in mid-day trading, rising toward $1,235 per ounce as the U.S. Dollar Index (DXY) fell 0.6% to an intra-day low of 86.25 after investment firm PIMCO released a report stating that the AAA rating of the U.S. could see "a lot of stress" within three years.

spain & portugal to lay out budget plans

$1,227.60 +4.63

10:53am EST

The European Union (EU) issued instructions to Spain and Portugal that their governments must explicitly lay out the measures each plans to implement to reduce the countries' budget deficits.

In a report the EU stated that "The targets are appropriately ambitious and imply substantial fiscal consolidation. Spain and Portugal are expected to specify measures in their 2011 budgets amounting to 1.75 percent and 1.5 percent of GDP, respectively, in order to attain the new targets."

EU to "disintegrate" within 18 months?

$1,226.40 +3.43

8:47am EST

Ambrose Evans-Pritchard of The Telegraph discussed a soon-to-be released report from French financial firm AXA stating that there is a "serious likelihood" that the European Union will "break in half or disintegrate" within the next 18 months, in large part because of the sovereign debt crisis and the structure of the European Union.

The report cites the fact that the European Union does not have over-riding legal power over each nation in Europe, which is a pre-condition for the system to work, as the "fatal flaw" in the process. The strategy assumes that citizens of countries where austerity measures are being implemented will endure "years of pain for the sake of foreign creditors," which in AXA's estimation is a "pipedream."

Gold up slightly despite stronger euro

$1,225.60 +2.64

8:33am EST

The gold price traded slightly higher ahead of the U.S. equity market opening in spite of the euro rallying further against the U.S. dollar, by 0.2% to 1.2275. Overseas markets all posted modest gains, while cyclical commodities were mixed - with oil futures higher by 0.7% at $75.63 per barrel and copper futures lower by 0.3% at $3.01 per pound.

End of Day Update

$1,222.97 -3.83

4:16pm EST

The gold price retraced a portion of Friday's gains as a favorable output report from Europe sent investors into riskier assets. The U.S. dollar was lower against virtually every other major currency as capital flowed into stocks and other cyclical assets. Markets pulled back after Moody's formally announced a downgrade of Greek debt to junk status, however, and U.S. stocks were unable to hold their earlier gains, closing lower on the day.

Gold Price: $1,222.97, -3.83, -0.31%

Silver Price: $18.23, +0.00, +0.00%

US Dollar Index: 86.60, -0.90, -1.03%

Oil Price: $74.978, +1.19, +1.61%

Copper Price: $2.98, +0.07, +2.44%

10-Year Yield: 3.26%, +0.02, +0.74%

gold futures fall, industrial metals rise

2:45pm EST

COMEX gold futures - per the August contract - finished lower by $5.70, or 0.5%, at $1,224.50 per ounce. Gold futures had fallen as low as $1,217.50 in morning trading, but recovered a considerable portion of its decline as the euro declined from its intra-day high of 1.2309 against the U.S. dollar to 1.2254. Copper futures - per the July contract - led industrial metals higher, rising $0.09, or 3.0%, to $2.99 per pound.

gold off lows after greece downgrade

$1,224.62 -2.18

1:38pm EST

The gold price rebounded toward $1,225 per ounce after Moody's cut Greece's government bond rating by four notches, from A3 to Ba1. The euro moved from 1.2309 against the U.S. dollar to 1.2258, while the broader equity market gave up a considerable portion of its gain on the news, but remained firmly in positive territory.

In its report the firm wrote that "The Ba1 rating reflects our analysis of the balance of the strengths and risks associated with the Eurozone/IMF support package. The package effectively eliminates any near-term risk of a liquidity-driven default and encourages the implementation of a credible, feasible, and incentive-compatible set of structural reforms, which have a high likelihood of stabilizing debt service requirements at manageable levels."

Afghan mineral wealth exceeds $1 trillion

$1,223.24 -3.56

9:12am EST

A Pentagon task force claims that there is enough mineral wealth in Afghanistan to turn the country into one of the world's most lucrative mining centers. A survey conducted by the U.S. Geological Survey discovered nearly $1 trillion in mineral deposits in Afghanistan, including iron, copper, cobalt, gold and lithium. The survey also found large deposits of niobium - a soft metal used in producing superconducting steel - and gold in areas of southern Afghanistan.

Jobs key to housing recovery: Report

$1,222.73 -4.07

8:45am EST

A Harvard University report said the key to the housing recovery is the strength of the U.S. labor market. "If history is a guide, what happens with jobs will matter the most to the strength of the housing rebound," said Eric Belsky, Executive Director of the Joint Center for Housing Studies. Despite falling home prices, loan modifications, and softening rents, more borrowers are experiencing severe housing cost burdens. The level of debt relative to equity started 2010 at a record 163 percent, the report said.

Gold price flat after industrial report

$1,224.55 -2.25

8:22am EST

The gold price traded flat despite a sharply lower U.S. dollar as the euro climbed after a report showed industrial production in the euro-zone for the month of April grew at the highest year-over-year rate in nearly two decades. The news sent most other markets higher with stocks in Europe and Asia posting gains in excess of 1% and U.S. stock futures also pointing to a higher open. The commodity complex also gained with crude oil rising above $75 per barrel and copper up $0.08 to $2.98 per pound.

End of Day Update

$1,226.77 +10.51

4:20pm EST

The gold price closed higher to finish the week with a 1% gain and its third straight weekly advance. Although the metal pulled back from the new high it set Tuesday of this week, fundamentals for gold continue to improve in light of the ECB's and Bank of England's rate announcements. Stocks spent most of the day in negative territory but rallied to post a gain in the last 30 minutes in relatively light trading. The U.S dollar also rallied, snapping a three-day winning streak for the euro. Commodities were mixed with energy sliding and copper regaining the $2.90 per pound level.

Gold Price: $1,226.77, +10.51, +0.86%

Silver Price: $18.23, -0.02, -0.11%

US Dollar Index: 87.36, +0.20, +0.23%

Oil Price: $74.24, -1.24, -1.64%

Copper Price: $2.93, +0.07, +2.36%

10-Year Yield: 3.23%, -0.09, -2.56%

COMEX gold contract gains 1% for week

2:16pm EST

COMEX gold futures closed higher with the front-month August contract gaining $8 to close at $1,230.20. July silver futures fell $0.08 to $18.27 and the September palladium contract fell $1.80 to 447.50.

New PM warns of greek-like crisis

$1,225.79 +9.53

8:38am EST

New Japanese Prime Minister Naoto Kan in his first address to Parliament warned that Japan faces a Greek-like debt crisis if the country does not contain government debt. With the world's second-largest economy, Japan has the largest public debt to GDP ratio at 218%, according to the International Monetary Fund. Kan pledged his government would work with Japan's central bank to develop a "strong and comprehensive" policy.

Gold trades higher ahead of reports

$1,223.14 +6.88

8:21am EST

The gold price was trading higher on a slightly weaker dollar, while European and Asian stock markets rose as investors continued to gain confidence from positive economic indicators. Crude oil was flat to slightly down, but copper showed strength with the front-month futures contract up 2% in early trading. Reports on retail sales, consumer sentiment and inventories are due this morning, and analysts' forecasts indicate improvements in each.

End of Day Update

$1,216.26 -16.20

4:26pm EST

The gold price fell as investors liquidated safe-haven positions and reallocated to riskier assets. Investors also fled U.S. dollar positions and Treasuries as the 10-year note yield jumped 14 basis points. Consequently, stocks and commodities were the beneficiaries of redeployed capital flows, as was the euro which rallied above 1.20 to 1.2124.

Gold Price: $1,216.26, -16.20, -1.31%

Silver Price: $18.25, +0.12, +0.66%

US Dollar Index: 86.98, -0.92, -1.04%

Oil Price: $75.74, +1.36, +1.83%

Copper Price: $2.89, +0.04, +1.46%

10-Year Yield: 3.32%, +0.14, +4.40%

gold futures fall for second straight day

2:52pm EST

COMEX gold futures - per the August contract - finished lower for the second straight day, dropping $7.70, or 0.6%, to $1,222.20 per ounce. Copper for July delivery gained $0.0125 to $2.8625 per pound as cyclical commodities benefitted from the 0.9% rise in the euro to 1.2103 against the U.S. dollar.

Bid to halt rescue plan rejected

$1,225.10 -7.36

12:40pm EST

Germany's high court denied a bid seeking to halt German contributions to the $1 trillion rescue plan approved by the European Central Bank last month. The court rejected a request filed by a member of the ruling Christian Social Union for a temporary injunction blocking the country's involvement in the plan until the constitutionality of Germany's participation can be decided. Opponents of German participation in the rescue plan noted that the court had only denied the temporary injunctive relief - and that the legal challenge to the rescue plan remains open.

Trichet: "Sterilized" purchases continue

$1,223.20 -9.26

11:54am EST

European Central Bank (ECB) President Jean-Claude Trichet said the European Union's central bank will continue the bond purchase program which is part of the $1 trillion rescue package announced last month at the height of the Greek debt crisis. The rescue announcement in mid-May ignited fears of inflation among investors and sent the euro to four-year lows within a matter of weeks. ECB officials have taken pains to point out that the bond purchases are "sterilized" - that purchases are offset by other asset sales and result in no increase in system liquidity - but investors have paid little heed to such assurances while fleeing the euro and driving up the gold price.

Trichet made the remarks during his monthly post-ECB meeting news conference, but declined to provide details on the scope or duration of the purchase program.

UBS strategist: $1,500 gold in one year

$1,224.40 -8.06

9:05am EST

Kelvin Tay, chief investment strategist at UBS Wealth Management, expects gold prices to hit $1,500 in 12 months. Tay told CNBC that relative to oil prices gold is cheap. Tay also observed that he does not expect a gold price correction and he would be a buyer if the yellow metal falls below $1,200 per ounce.

Gold down after ECB rates unchanged

$1,225.22 -7.24

8:41am EST

The gold price traded lower as the euro strengthened against the dollar. The European Central Bank (ECB) left its key interest rate unchanged, as expected, at its latest monetary policy meeting. Stocks overseas and U.S. stock futures were all trading higher as fears eased about the effects of a European economic slowdown. The commodity complex traded higher, except for base metals, with copper and silver moving lower in the premarket session.

End of Day Update

$1,232.46 -4.59

4:54pm EST

The gold price recovered a portion of its late morning losses after the euro staged a mid-day rally that saw the currency reach 1.2074 against the dollar, but then fizzled to close at 1.1989. Stocks were also unable to hold earlier advances and finished down for the day, but crude oil and copper extended their gains.

Gold Price: $1,232.46, -4.59, -0.37%

Silver Price: $18.13, -0.16, -0.87%

US Dollar Index: 87.90, -0.50, -0.57%

Oil Price: $73.92, +1.93, +2.68%

Copper Price: $2.83, +0.05, +1.73%

10-Year Yield: 3.18%, -0.00, -0.00%

gold futures unable to build on yesterday's gains

2:32pm EST

One day after finishing at a record high, COMEX gold futures - per the August contract - closed lower, falling $15.70, or 1.3%, to $1,229.90 per ounce. Cyclical commodities - including copper and oil - finished higher by 3.3% and 2.5%, respectively.

gold extends decline as euro rallies

$1,225.48 -11.57

11:24am EST

The gold price extended its decline to $1,225 as morning trading progressed. After opening modestly weaker, the sell-off in gold intensified as the euro rallied over 1% to 1.2077 against the U.S. dollar.

gld reports 2nd largest inflows ever

$1,232.30 -4.75

10:51am EST

As GoldAlert has discussed recently, investment demand for gold has continued to increase as the gold price has outperformed stocks and other commodities this year. The latest evidence of the rising demand was news from the SPDR Gold Trust (GLD), the largest gold ETF, that $4.4 billion in net inflows occurred in May - the second largest figure after $4.8 billion in February of 2009.

bearish market sentiment on the rise

$1,234.55 -2.50

9:38am EST

Bearish sentiment on the broader market has continued to rise, as evidenced by the latest weekly Investors Intelligence sentiment survey. The bearish percentage climbed to 31.9% from 28.4% last week, while bullish sentiment dropped to 38.5% from 39.8%. Advisors classified under correction declined to 29.6% from 31.8% in the prior week. From a contrarian perspective, the increase in bearish sentiment is a positive factor that may signal the recent sell-off in stocks and cyclical commodities is at least due for a pause.

chinese stocks rally on economic data

$1,232.80 -4.25

9:03am EST

Chinese stocks rallied the most in two weeks after the latest data on exports in China showed a 50% rise, well ahead of the 32% expected by economists. Another economic report showed that new loans in China exceeded expectations of 600 billion yuan by over 5%.

Gold price eases on euro strength

$1,231.22 -5.83

8:39am EST

The gold price traded slightly lower as the euro rose against the dollar and overseas equity markets showed strength. Favorable news on machinery orders in Japan added to investor optimism on the global recovery ahead of Congressional testimony by Federal Reserve Chairman Ben Bernanke later today. Energy edged higher and copper stopped its slide in recent sessions, and U.S. stock futures have been gaining heading into the open.

End of Day Update

$1,237.05 -3.75

4:26pm EST

The gold price closed down by $3.75 at $1,237.05 in spite of hitting a new all-time high this morning. The euro/U.S. dollar currency cross - which has been one of the most closely watched indicators risk aversion - exhibited substantial volatility, falling to as low as 1.1902 and as high as 1.201, before stabilizing near 1.1955 as U.S. equity markets closed.

Gold Price: $1,237.05, -0.30%

Silver Price: $18.28, +0.12, +0.66%

US Dollar Index: 88.26, -0.15, -0.16%

Oil Price: $72.16, +0.72, +1.01%

Copper Price: $2.80, +0.04, +1.21%

10-Year Yield: 3.18%, +0.04, -1.14%

gold turns lower despite euro weakness

$1,235.97 - 4.83

3:09pm EST

The gold price turned negative in afternoon trading, falling below $1,240 per ounce despite the euro declining back toward the 1.19 level. After reaching a new record high of $1,252, it appears that investors and traders decided to book some profits in the yellow metal.

gold futures close at record high

2:34pm EST

COMEX gold futures - per the August contract - finished at a new record high on a closing basis, up $4.80, or 0.4%, to $1,245.60 per ounce. Gold futures did rally to as high as $1,254 early this morning, but gave back a portion of their gains as the euro currency rebounded against the U.S. dollar amid further speculation of central banks intervening in the currency markets.

euro rebounds, snb has "no comment"

$1,243.15 +2.35

11:48am EST

The gold price climbed back toward its overnight high of $1,252 as morning trading progressed, but quickly turned lower as the euro rebounded from 1.19 to near 1.20 against the U.S. dollar. While speculation has been rising that various central banks have or are considering intervening in the currency markets to support the euro, the Swiss National Bank (SNB) issued a statement this morning that it has "no comment" on the matter.

The fact that the SNB is not willing to deny the speculation suggests they may in fact be intervening. As GoldAlert has discussed previosuly, government intervention in financial markets may provide a temporary relief, but rarely if ever changes the longer-term trend.

gold to surpass price of platinum?

$1,242.27 +1.47

9:37am EST

Paul Walker, the CEO of London-based metals consultancy firm GFMS, stated in an interview that the gold price is likely to trade between $1,050 and $1,300 for the remainder of 2010, but could advance to as high as $2,000 per ounce this year if the sovereign debt crisis spreads beyond Europe.

Walker also noted that the gold price could rise above the price of platinum, which is currenctly trading at $1,516 per ounce. The last time the price of gold was higher than platinum was on October 27, 2008 during the global financial crisis - when gold reached $747.20 and platinum fell to $744.25 per ounce.

bernanke vague in rate hike discussion

$1,242.43 +1.63

9:02am EST

Ben Bernanke discussed his economic outlook in a question-and-answer session with ABC News journalist Sam Donaldson in Washington last night. The Fed Chairman stated that the economic recovery is not likely to reduce the unemployment rate in the near future, and while the Federal Reserve will raise interest rates before the economy returns to full employment, Bernanke noted that the Fed still does not know when that process will begin.

While Bernanke can discuss the possibility of eventually raising rates, the fact that he has not provided a timeframe for doing so, and has continued to leave the "extended period" language in the FOMC's policy statement suggest the Fed is unlikely to increase interest rates anytime soon. Moreover, with the euro still under significant pressure, a rate hike in the U.S. would only exascerbate the problems in Europe. The bottom line is that the near-zero interest rate policies that have been a driving factor behind the bull market in gold are likely to remain for quite some time.

gold price holds in mixed market

$1,241.48 +0.68

8:41am EST

The gold price traded flat in a mixed market with overseas equities lower but U.S. futures pointing to a higher open. Energy also traded higher but copper continued to slide on pessimism over the direction of the global economy. The dollar was mixed against other major currencies, but the euro appears to have halted its descent for the time being.

End of Day Update

$1,240.80 +22.45

4:23pm EST

The gold price rallied over $25 from its morning low of $1,212 to finish at a new all-time high on a closing basis, and less than $9 from its intra-day record high of $1,249.50 per ounce. The substantial move in the price of gold came despite a modest move in the euro/U.S. dollar currency cross, which was lower by 0.4% at 1.1918 at the close of U.S. equity markets.

Gold Price: $1,240.80, +22.45, +1.84%

Silver Price: $18.16, +0.78, +4.49%

US Dollar Index: 88.50, +0.27, +0.31%

Oil Price: $70.95, -0.56, -0.78%

Copper Price: $2.75, -0.07, -2.64%

10-Year Yield: 3.15%, -0.06, -1.81%

gold futures finish $2 below record close

2:36pm EST

COMEX gold futures - per the August contract - finished higher by $23.10, or 1.9%, to $1,240.80 per ounce, less than $2 below its all-time closing high reached on May 11. Silver futures - per the July contract - surged 5.0% to $18.16 per ounce, while copper for July delivery finished at an eight-month low, down $0.05 to $2.77 per pound.

gold turns positive, currenices flat

$1,223.21 +4.86

10:29am EST

The gold price turned positive as morning trading progressed, although the euro/U.S. dollar currency cross remained near unchanged levels. This positive reversal is further evidence of the gold price's ability to detach itself from movements in the currency markets as it continues its longer-term uptrend.

Europe markets rebound on german data

$1,213.70 -4.65

9:24am EST

European markets and U.S. stock market futures rebounded after the release of the German factory orders report, which showed an unexpected increase for a second month in April. Economists had predicted a 0.4% decline, while actual orders increased 2.8%.

The significant decline in the euro in recent months undoubtedly helped the data, along with the global economic recovery that had been gaining steam prior to the sovereign debt turmoil that escalated in May.

Mints Report increased gold buying

$1,213.30 -5.05

8:56am EST

The Rand Refinery, which produces the South African Krugerrand, reports that sales of the gold coin are the highest in 25 years with production rising by 50% to 30,000 per week. A refinery spokesperson was quoted by Reuters saying, "There is a lot of demand especially from Germany; people are looking for gold." The Perth Mint in Australia said that orders from Europe have accounted for 69% of new gold purchases. The Perth Mint has doubled production capacity in the past 18 months. The U.S Mint released a collector's version of the 2010 American Buffalo Gold Proof Coin in late April and has sold 135,000 one-ounce coins so far.

Gold price eases as euro stabilizes

$1,212.84 -5.51

8:27am EST

The gold price traded lower in premarket trading as the euro stabilized from the plunge below the 1.20 level in the last session. But stocks in Europe were off again and commodities were showing weakness with crude oil trading down near $71 per barrel and copper continuing to slide, falling below $2.80 per pound to $2.78.

End of Day Update

$1,218.35 +12.50

4:43pm EST

The gold price provided investors one of the few safe havens on a day that saw a market-wide sell-off after the monthly employment report missed job growth expectations for May, reports surfaced that the Bank of China was purchasing euros to stabilize the currency, and Hungary's prime minister described the country's economic condition as "very grave." Investors fled most risk assets and sought shelter in the gold price, the U.S. dollar and Treasury issues. The major stock indices all posted losses in excess of 3%, copper fell over 5%, and crude oil plunged below $71 per barrel.

Gold Price: $1,218.35, +12.50, +1.03%

Silver Price: $17.42, -0.57, -3.18%

US Dollar Index: 88.21, +1.00, +1.14%

Oil Price: $70.99, -3.62, -4.85%

Copper Price: $2.80, -0.15, -5.09%

10-Year Yield: 3.20%, -0.17, -5.04%

gold futures recover, other metals sink

2:57pm EST

COMEX gold futures - per the August contract - finished higher by $7.70, or 0.6%, to $1,217.70 per ounce. With today's rally gold futures returned to positive territory on the week.

Gold was the only metal to post a gain amid the broad-based liquidation on Wall St., as silver, copper, platinum, and palladium fell by 3.5%, 4.3%, 1.1%, and 4.4%, respectively.

gold rises amid euro intervention report

$1,212.01 +6.16

12:04pm EST

The gold price turned positive, rising above $1,210 per ounce in mid-day trading. The timing of the yellow metal's rise corresponded to a report that the People's Bank of China (PBOC), the Chinese central bank, is purchasing euro assets in order to stabilize the euro, which has fallen below the key 1.20 level.

While currency intervention may provide a temporary relief, it does not address the fundamental problems facing the euro and is unlikely to reverse the longer-term downtrend in the currency.

euro nears 1.20, new 4-year low

$1,204.35 -1.50

11:32am EST

The euro hit a new four-year low against the U.S. dollar of 1.2002 amid the sell-off on Wall St. Many investors and traders have highlighted the 1.20 level as particularly important, and have identified 1.15 and perhaps even 1.10 as the next targets should the 1.20 level be breached.

The negative consequences for stocks, cyclical commodities, and other risk assets in such a situation would be significant.

"very grave situation" in hungary

$1,205.45 -0.40

8:53am EST

A spokesman for Hungarian Prime Minister Viktor Orban was quoted as saying the country's economy is in a "very grave situation." Peter Szijarto went on to say at a news conference in Budapest that a fact-finding committee will release preliminary economic data this weekend, and subsequently a government plan within 72 hours of the committee's report.

While Hungary has its own form of currency, the forint, such frank remarks from a government official have contributed to the downside pressure in the euro this morning because of the fear that these economic problems could spread to other nations in the region.

Jobs report misses badly

$1,207.60 +1.75

8:37am EST

Non-farm payroll employment increased by 430,000 in May on the basis of 411,000 temporary census jobs. The report badly missed estimates of 200,000 new non-government jobs. Stock futures plunged further on the release, and the euro edged closer to the 1.20 level versus the dollar.

Gold price holds as Dollar gains

$1,200.12 +2.28

8:10am EST

The gold price traded slightly higher overnight as the euro hit a new four-year low on resurfacing concerns over sovereign debt risk, the health of European banks, and the danger they present to an economic recovery. European and Asian stock markets were slipping and U.S. stock futures were yielding as well. Energy contracts traded lower and base metals continued to slide with the copper future trading down to $2.92 per pound.

End of Day Update

$1,205.85 -18.16

4:45pm EST

The gold price drifted lower in the morning session before plunging a full percentage point further at mid-day as the U.S. dollar picked up steam and equities rallied off their intra-day lows. Investors have been unwinding "safe haven" positions and reallocating to riskier assets which are still well off their 2010 highs.

Gold Price: $1,205.85, -18.16, -1.48%

Silver Price: $18.01, -0.36, -1.96%

US Dollar Index: 87.25, +0.53, +0.61%

Oil Price: $74.47, +1.61, +2.21%

Copper Price: $2.96, -0.08, -2.71%

10-Year Yield: 3.37%, +0.03, +0.90%

gold futures fall, all metals lower

2:29pm EST

COMEX gold futures - per the August contract - closed down by $12.60, or 1.0%, at $1,210.00 per ounce. The entire metals sector finished lower, while copper futures led the way with a $0.09, or 3.1%, decline to $2.94 per pound.

gold extends decline as dollar rallies

$1,204.22 -19.78

12:38pm EST

The gold price has extended its decline in mid-day trading and is on track for its second worst day in six weeks. As GoldAlert recently discussed, the correlation of the price of gold with both the euro and U.S. dollar have declined in recent weeks, and today's action is further evidence of this trend. While the gold price had been rising alongside the dollar for most of the past two months, today the U.S. Dollar Index (DXY) is higher by 0.5% at 87.19, while the gold price has dropped toward the $1,200 per ounce level.

Weekly jobless claims fall by 10,000

$1,217.25 -6.76

8:44am EST

The weekly jobless claims number fell 10,000 to 453,000, slightly better than economists' expectations. The four- week average, however, increased by 1,750 to 459,000. Continuing claims for the week ended May 22 also increased by 31,000 to 4.67 million recipients. The markets have traded little changed on the jobs reports.

ADP jobs number misses estimate

$1,217.35 -6.66

8:29am EST

The May ADP Employment report showed the U.S. economy adding 55,000 private sector jobs for the month, under the 75,000 predicted by analysts. The April private jobs number was revised upward, more than doubling the initial 32,000 gain to 65,000.

Gold down on increasing risk appetites

$1,216.29 -7.72

8:16am EST

The gold price fell in overnight trading as stock markets rebounded in Europe and Asia on investor optimism over an economic recovery that appears to be gaining momentum. Energy contracts were also moving higher, but the silver price and other base metals were sliding along with the gold price. In addition to the weekly jobless claims report, the ADP Employment Report will also be released, and investors will be looking for confirmation of recent confidence in the numbers.

End of Day Update

$1,224.01 -1.40

5:11pm EST

The gold price closed slightly down as the euro firmed against the dollar and a favorable report on pending home sales gave investors some confidence in the domestic economy. The housing report provided a lift to the major stock indices which climbed over 2% and provided a boost to energy contracts, but could not stop copper from slipping on the day. The reallocation into stocks sent Treasury yields higher, with the 10-year note adding 8 basis points.

Gold Price:$1,224.01, -1.40, -0.11%

Silver Price: $18.37, -0.07, -0.38%

US Dollar Index: 86.69, -0.20, -0.23%

Oil Price: $73.40, +0.82, +1.13%

Copper Price: $3.05, -0.00, -0.15%

10-Year Yield: 3.34%, +0.08, +2.45%

gold futures winning streak ends at six

2:24pm EST

COMEX gold futures - per the August contract - closed lower by $4.30, or 0.4%, at $1,222.60 per ounce. The decline in gold futures broke a six session winning streak that had seen the yellow metal rise from $1,178 to $1,225 from May 21 to June 1.

Other metals moved lower alongside gold, except for platinum, which finished higher by 0.1% at $1,550.40 per ounce.

iran dumping euros for dollars, gold

$1,217.71 -7.69

10:12am EST

A report on the website of Iran state-owned Press TV announced that the nation's central bank will sell 45 billion worth of euros from its reserves in order to buy U.S. dollars and gold. Iran generally does not disclose the value of its reserves, though state television reported in December 2009 that they exceeded $80 billion.

This news comes after comments from Mahmoud Bahmani, the Governor of the Central Bank of Iran, who in the May 18 edition of Hezbollah daily stated that "Considering that the value of the euro is plummeting and that of the dollar is increasing, we will be examining the issue of changing the composition of Iran's hard currency basket."

While other nations, including China, have refuted reports that they are looking to diversify their reserves out of euros (most likely to help stem the tide in the currency), the fact that Iran has not refuted this report indicates that despite its precarious position in international politics, some parties in the Middle East remain concerned that the euro will continue to fall against the U.S. dollar - which would likely be a positive development for the gold price.

japan's prime minister resigns

$1,219.99 -5.41

9:45am EST

Yukio Hatoyama, Japan's Prime Minister, resigned less than nine months after assuming the position - the shortest term for a Japanese leader since 1964. The Japanese yen and Nikkei index declined on concerns that political instability will reduce Japan's chances of cutting its public debt - the world's largest - ahead of mid-term elections next month.

Hatoyama's resignation is the latest in a series of surprising political developments across the globe that have contributed to the economic uncertainty affecting financial markets in recent months.

Gold slides as ECB deposits surge

$1,217.79 -7.62

8:29am EST

The gold price traded lower in the overnight session as the euro weakened versus the U.S. dollar and equity markets traded down in Europe and Asia. The commodity complex also moved lower as crude oil fell $0.32 to $72.26 per barrel and copper declined $0.06 to $3.00 per pound.

The European Central Bank (ECB) reported that overnight deposits from euro-zone banks reached 316.4 billion euros, an indication of the fear over counterparty risk among European banks despite the massive $1 trillion rescue package the ECB implemented two weeks ago.

End of Day Update

$1,225.41 +11.27

4:26pm EST

The gold price picked up in June where it left off in May - moving higher. The price of gold rallied nearly 1% as investors and traders continued to seek the safety of the yellow metal amid fresh sovereign debt concerns across Europe. The euro fell to another new four-year low against the U.S. dollar this morning, near 1.2112, as the resignation of Germany's President Horst Koehler and comments on France's AAA rating from the country's budget minister, Francois Baroin, added further to the turmoil in Europe.

Gold Price: $1,225.41, +11.27, +0.93%

Silver Price: $18.44, +0.05, +0.27%

US Dollar Index: 86.77, +0.27, +0.31%

Oil Price: $72.23, -1.74, -2.35%

Copper Price: $3.05, -0.06, -1.80%

10-Year Yield: 3.26%, -0.05, -1.45%

gold futures rise, outpace other metals

3:27pm EST

COMEX gold futures - per the August contract - finished higher by $11.90, or 1.0%, at $1,226.90 per ounce. Other metals fared worse, however, with copper and palladium lower by 1.3% and 0.3%, respectively, while platinum futures finished unchanged at $1,549.40 per ounce.

euro surges, gold holds gains

$1,225.65 +11.52

10:31am EST

The euro has surged from as low as 1.2112 to 1.2336 against the U.S. dollar this morning while stocks and cyclical commodities have erased their earlier declines and turned positive. The gold price, which has had a strong negative correlation with the euro in recent months, has showed resiliency and is maintaining the large majority of its gains.

canada first g-7 nation to raise rates

$1,226.30 +12.17

9:48am EST

The Bank of Canada (BOC) raised its benchmark interest rate 25 basis points to 0.50% at its latest meeting on monetary policy, as most economists expected. In doing so, Canada became the first G-7 nation to increase interest rates since the onset of the financial crisis in mid-2007.

In its policy statement the Canadian central bank noted that "any further reduction of monetary stimulus would have to be weighed carefully against domestic and global economic developments." Such language has increased speculation that the BOC is unlikely to raise rates further if the European sovereign debt crisis continues to pressure the euro currency and/or more significantly impacts financial markets across the globe.

chinese manufacturing activity falls

$1,225.28 +11.14

9:22am EST

The Chinese Purchasing Managers' Index (PMI) came in at 53.9 in May - below market expectations and the 55.7 reading from April. The lower than expected manufacturing activity figure inidcates that the efforts of Chinese policymakers to slow down their credit-fueled economic growth is working, but also reduces the chances for tighter monetary policy going forward - a bullish factor for the gold price.

Gold price up on new Euro-zone fears

$1,226.53 +12.39

8:43am EST

The gold price gained on fresh fears of debt crises in the euro-zone, after France's budget minister Francois Baroin voiced concern over the challenges to the country's triple-A credit rating. A European Central Bank report advised that euro-zone banks may need to write down up to 195 billion euros in debt over the next 18 months. The euro hit a new four-year low versus the U.S. dollar as investors are once again seeking shelter in the greenback, U.S. Treasuries and investments tied to the price of gold.

Gold gains on light volume

$1,216.25 +2.11

4:36pm EST

The gold price rose marginally on light volume as America celebrated its Memorial Day holiday. Stock markets in Europe climbed and oil rose toward $75 per barrel. The Canadian dollar appreciated after Canada reported that its first quarter GDP surged 6.1% - the fastest rate in over a decade.

End of Day Update

$1,214.14 +1.11

4:12pm EST

The gold price managed to post a modest gain on the day, rallying back from an intraday low near $1,202. Stocks and commodities reversed their premarket gains and were trading in negative territory at the opening bell, then continued to slide throughout the day. Commentators pointed to the downgrading of Spain's debt by Fitch Ratings as the reason behind the sell-off, but markets were already down at the time of the report and Fitch's move followed by weeks a similar downgrade by Standard and Poor's.

Gold Price: >$1,214.14, +1.11, +0.19%

Silver Price: $18.39, -0.14, -0.76%

US Dollar Index: 86.69, +0.42, +0.48%

Oil Price: $74.11, -0.44, -0.59%

Copper Price: $3.13, -0.04, -1.14%

10-Year Yield: 3.28%, -0.08, -2.27%

comex gold futures post 3.7% monthly gain

3:20pm EST

COMEX gold futures - per the June contract - gained $0.30, or 0.02%, to settle at $1,212.20 per ounce. Gold for June delivery finished the month of May higher by $43.40, or 3.7%.

gold recovers after spain downgrade

$1,213.45 +0.43

2:13pm EST

The gold price recovered its entire morning decline that saw the price of gold fall to as low as $1,204 per ounce. Gold initially bounced a few dollars higher after the Spain downgrade news, and subsequently moved into positive territory as it looks to close the month of May with a nearly 3% gain.

fitch downgrades spain, euro tumbles

$1,207.03 -5.99

12:46pm EST

The euro experienced a sharp mover lower against the U.S. dollar - from 1.238 to near 1.230 - after Fitch downgraded Spain's long-term credit rating to AA+ from AAA with a stable outlook. The gold price recovered a portion of its decline, but remained modestly lower, while the S&P 500 tumbled from 1,098 to 1,087.

silver price to reach $20 this year?

$1,207.85 -5.17

10:58am EST

Philip Klapwijk, Chariman of GFMS - the London-based metals consultancy firm - stated yesterday that the price of silver had a "fair chance" of reaching $20 per ounce this year, but is unlikely to reach its 28-year high of $21.24 set in March 2008. The firm attributed its bullish outlook on silver to double-digit growth in industrial consumption and strong investment demand.

consumer spending unexpectedly drops

$1,208.54 -4.48

9:47am EST

Consumer spending in the U.S. unexpectedly fell in April, according to the latest report from the Commerce Department. Purchases did not rise for the first time since September 2009, coming in unchanged versus a 0.3% median estimate in a Bloomberg News survey of 77 economists. The savings rate increased to 3.6%, its highest level since January 2010, as purchases declined.

This data is yet another sign that the economic recovery may be losing traction. Moreover, it reinforces the Federal Reserve's dovish stance on monetary policy - one of the main catalysts for the rise in the gold price in recent years.

WGC releases gold demand trends report

$1,213.76 +0.74

8:31am EST

The World Gold Council (WGC) released its first quarter 2010 Gold Demand Trends report, highlighted by the organization's view that demand for gold is likely to remain strong this year due to investment demand in Europe and the U.S. and jewellery demand in India and China. Demand is "exceptionally strong" from German and Swiss investors, mainly due to concern over fiscal deficits in the Eurozone and the potential inflationary impact of the European Central Bank's $1 trillion rescue plan to address the sovereign debt crisis.

Gold price shows modest gain

$1,213.55 +0.53

8:09am EST

The gold price traded marginally higher overnight against a slightly lower dollar ahead of a three-day holiday weekend in the U.S. European and Asian stock markets were also trading higher as investor jitters continued to calm over reports later denied that China was seeking to unload euro-denominated debt. U.S. stock futures advanced in premarket action, and commodities were edging higher as well. Reports on consumer sentiment, spending and income are due out today, as is the Chicago Purchasing Managers Index.

SPDR Gold Trust to offer 239.3m shares

$1,213.02 +2.33

4:42pm EST

The SPDR Gold Trust (GLD), which acts as a proxy for the price of gold, filed for a follow-on offering with the SEC. GLD, the second most widely-held ETF in the world, plans to offer 239.3 million shares, which would increase its shares outstanding by 57.5%, from 416.4 million to 655.7 million. The substantial size of the offering is indicative of the dramatic rise in investment demand for gold and gold-related assets, and consistent with the considerable rise of inflows into the GLD in recent years.

End of Day Update

$1,213.02 +2.33

4:28pm EST

The gold price eked out a modest gain on a day that saw most asset classes surge. The losers on the day were the U.S. dollar and U.S. Treasuries, as safe haven positions were liquidated in favor of stocks and commodities. That the gold price did not share the fate of the dollar and bonds today may signal that despite today's rally in oversold sectors investors remain concerned over sovereign and private debt levels and the danger they pose to long-term economic growth.

Gold Price: $1,213.02, +2.33, +0.19%

Silver Price: $18.53, +2.49, +0.84%

US Dollar Index: 86.26, -0.87, -0.99%

Oil Price: $74.73, +3.22, +4.50%

Copper Price: $3.17, +0.09, +3.00%

10-Year Yield: 3.34%, +0.15, +4.49%

bearish sentiment reaches 6-month high

$1,213.55 +2.86

2:27pm EST

The American Association of Individual Investors sentiment survey showed a massive increase in the percentage of bears, from 31.7% last week to 50.9% - the first time the bearish percentage has risen above 50% since November 2009. The percentage of bulls plunged from 40.3% to 29.8%. Advisors classified under correction fell from 25.0% to 19.3%.

Given the sigificant decline in financial markets over the past four weeks and the dramatic increase in bearish sentiment, from a contrarian perspective the markets may be due for a meaningful move higher - with today's nearly 3% rise in the S&P 500 indicative of just that.

gold resilient as euro hits intra-day high

$1,215.11 +4.42

11:48am EST

The gold price has continued to display its resiliency, today in the face of a rally in the euro against the U.S. dollar. After trading modestly higher near 1.224 this morning, the euro has just surged to a new intrad-day high near 1.2372 versus the dollar.

Gold, which has shown a signficant negative correlation to the euro in recent months, has remained in positive territory, which speaks to the yellow metal's ability to detach itself from all major fiat currencies in 2010.

first quarter GDP revised lower

$1,208.46 -2.23

9:24am EST

U.S. equity market futures pared a modest portion of their considerable gains after first quarter 2010 gross domestic product (GDP) was revised lower. Economists had expected the estimate to be revised higher, from 3.2% to 3.4%, while GDP was actually revised downward to 3.0%. This data will provide the Federal Reserve with further evidence to support their continued use of easy monetary policies to combat the deflationary effects of the financial crisis - a bullish development for the price of gold.

Stocks rebounding, gold price flat

$1,208.12 -2.57

8:30am EST

The gold price traded little changed as the dollar slipped against the pound and euro, and stocks in Europe and Asia climbed for a second straight day. Investors gained confidence after China denied a report that it was looking to reduce its exposure to European debt. U.S. stock futures were also up strong in premarket trading, with the S&P 500 Index and NASDAQ Composite Index futures posting gains over 2%. Commodities were higher with crude oil crossing above $73 per barrel and copper futures regaining $3.12 pound.

End of Day Update

$1,210.69 +11.82

4:17pm EST

The gold price held on to most of its gain even as the dollar continued its climb toward the one-year high it attained last week. Commodities also finished higher with crude oil breaking back above $70 per barrel, and the silver price reclaiming the $18 per ounce level. Stocks started out strong with the S&P 500 Index gaining 1.6% by mid-morning, but then reversed in the final two hours to finish off 6.10 at 1,067.95.

Gold Price: $1,210.69, +11.82, +0.47%

Silver Price: $18.10, +$0.15, +0.84%

US Dollar Index: 87.23, +0.88, +1.02%

Oil Price: $70.91, +2.16, +3.14%

Copper Price: $3.08, +0.03, +1.27%

10-Year Yield: 3.20%, +0.03, +0.94%

sprott gold trust prices offering

$1,210.21 +11.34

9:51am EST

The Sprott Physical Gold Trust (PHYS), a trust that invests in and holds susbtantialy all of its assets in physical gold bullion, announced yesterday a follow-on offering of 18 million trust units, with an underwriter over-allotment option of 2.7 million additional units. The proceeds will be used to purchase physical gold bullion, expected to amount to approximately 200,000 troy ounces of gold.

The offering priced this morning at $11.25 per unit, and includes 21.6 million units for gross proceeds of $243 million ($279.45 million if the underwriters exercise the full over-allotment option). PHYS is managed by Sprott Asset Management, the investment firm founded by hedge fund magnate Eric Sprott.

Gold price higher as Europe, Asia rebound

$1,213.00 +14.12

8:07am EST

The gold price surged in overnight trading despite a stronger dollar and an increase in risk appetites. European and Asian stock markets strongly rebounded from yesterday's plunge, with equity indices posting gains of 2% and higher. Commodities also bounced back, with crude oil breaking back above $70 per barrel, the silver price crossing $18 per ounce, and copper rising over 2%. Interest rates climbed higher as investors reallocated from liquid safe havens to riskier assets.

End of Day Update

$1,198.88 +5.59

4:17pm EST

The gold price rose above the $1,200 mark earlier in the session before settling back to close pennies below $1,199, on a day that saw the major market stock indices extend their two-week sell-off by nearly 3% at the open before recovering to finish mixed on the day. Commodities traced the equities market, opening sharply lower before trimming losses at the close, with crude oil crossing below $68 per barrel then rebounding above $69, and the silver price hitting a low of $17.51 per ounce before closing unchanged. Tensions on the Korean peninsula added skittishness to the growing pessimism over the economic and financial situation in Europe among investors, but the streak of lower market closings brought bargains hunters out in force in the afternoon session.

Gold Price: $1,198.88, +5.59, +0.47%

Silver Price: $17.89, -$0.02, -0.11%

US Dollar Index: 86.54, +0.33, +0.39%

Oil Price: $69.17, -1.04, -1.48%

Copper Price: $3.09, -0.03, -1.11%

10-Year Yield: 3.17%, -0.03, -0.94%

comex gold advances, other metals decline

2:54pm EST

COMEX gold futures for June delivery closed higher by $4.00, or 0.3%, at $1,198 per ounce as the price of gold continued to recover from last week's sell-off. Other metals did not fare so well, with Silver, platinum, and palladium futures falling 1.2%, 2.8%, and 5.0%, respectively.

deutsche bank raises gold price forecast

$1,195.75 +2.46

9:43am EST

Deutsche Bank (DB) raised its gold price forecasts for 2011 and 2012 to $1,450 and $1,600 - from $1,250 and $1,000 per ounce.

Gold price resists selling pressure

$1,192.01 -1.28

8:28am EST

The gold price held near its closing price in overnight trading as risk aversion continued to afflict other asset classes. Stock markets worldwide were lower by 2-3% and U.S. stock index futures were down by similar percentages. Commodities also slid with crude oil falling below $68 per barrel and the silver price hitting $17.75 per ounce. Concerns have grown that the nascent global recovery underway cannot be sustained as large debt loads make stimulus programs difficult to extend and investment harder to justify.

End of Day Update

$1,193.29 +15.39

4:35pm EST

The gold price began the week on a strong note, rising alongside the U.S. dollar amid further sovereign debt issues in Europe. The latest troubling sign was the Bank of Spain's decision to take over CajaSur, a Spanish savings bank that controls 0.6% of the nation's assets.

Gold Price: $1,193.29, +15.39, 1.31%

Silver Price: $17.91, +$0.26, 1.47%

US Dollar Index: 86.26, +0.89, +1.04%

Oil Price: $70.06, +$0.02, +0.03%

Copper Price: $3.12, +0.06, +1.99%

10-Year Yield: 3.21%, -0.03, -0.80%

comex gold futures rebound

2:43pm EST

COMEX gold futures - per the June contract - finished Monday up by $17.90, or 1.5%, at $1,194 per ounce as the yellow metal rebounded from last week's large sell-off. Silver futures - per the July contract - advanced $0.35, or 2.0%, to $18 an ounce, while copper for July delivery gained $0.09, or 2.8%, to $3.1410 per pound.

geithner meets on sovereign debt issues

$1,187.41 +9.51

9:56am EST

Treasury Secretary Tim Geithner and Secretary of State Hilary Clinton are in China for the two-day Strategic and Economic Dialogue, a set of annual discussions between the U.S. and China. Geithner is expected to reassure his Chinese counterparts that European policymarkers' efforts to handle the sovereign debt problems in Greece should only have a small impact on the global economic recovery.

Geithner is then scheduled to meet with European officials in London, Berlin, and Frankfurt, where he will emphasize the importance of coordinated efforts to stem the tide of the sovereign debt crisis as well as to reign in government spending.

gold price up after bank takeover

$1,184.88 +6.98

8:26am EST

The gold price firmed over the weekend and began to recover as safe haven buying re-emerged after a volatile week that saw markets plunge on fears over instability in the European economy. Fears heightened after the Bank of Spain took over CajaSur, a Spanish savings bank that holds 0.6% of the assets in Spain's financial system. Stock futures were trading down in the U.S. and Asia, but European markets were flat. In commodities the energy complex was lower, but base metals were rebounding along with the gold price.

End of Day Update

$1,177.65 -6.31

4:12pm EST

The gold price finsihed lower for the third consecutive day and sixth day in the last seven amid a recovery in the euro currency. The U.S. Dollar Index (DXY) - of which the euro comprises 57.6% - fell 0.8% to 85.36 amid speculation that the European Central Bank (ECB) is considering intervening in currency markets to support the euro, in addition to rumors that China is looking into participation in a globally coordinated measure to prop up the euro.

Gold Price: $1,177.65, -6.31, -0.53%

Silver Price: $17.65, -$0.07, -0.40%

US Dollar Index: 85.36, -0.66, -0.77%

Oil Price: $70.06, -$0.74, -1.05%

Copper Price: $3.07, +0.13, +4.38%

10-Year Yield: 3.22%, 0.00, unchanged

comex gold has worst week since february 2009

2:58pm EST

COMEX gold futures - per the June contract - closed Friday down by $12.50, or 1.0%, at $1,176.10 per ounce after reaching as low as $1,166.70 this morning. For the week gold futures declined 4.2% - its largest weekly decline since February 2009.

Silver futures - per the July contract - fell $0.06, or 0.4%, to $17.65 per ounce, and copper futures for July delivery gained $0.12, or 3.9%, to $3.0610 per pound.

gold price recovers alongside stocks

$1,186.02 +2.06

11:49am EST

The gold price turned positive in mid-day trading, rebounding from a low near $1,167 to $1,186 per ounce. The correlations between the gold price and various asset classes - including the U.S. dollar, euro, and equity markets - have broken down in recent days, evidenced by gold rallying alongside stocks today after moving in opposite directions for the majority of the past month.

credit markets show strong risk aversion

$1,180.59 -3.37

10:02am EST

Credit markets have displayed significant risk aversion in recent weeks, evidenced by three-month dollar Libor - the rate banks pay for three-month loans in U.S. dollars - reaching its highest level in nearly ten months. This rate is also a benchmark for approximately $360 trillion of financial products across the globe, including mortgages and student loans.

Gold weaker as stocks, commodities dive

$1,174.18 -9.76

9:17am EST

The gold price moved lower yet again, dropping in tandem with weaker stocks and commodities. Despite Germany's parliament passing the $1 trillion rescue package, selling pressure continued to intensify. While the euro rose for the third day in a row, gold could not a mount a recovery - and looks to be headed for its worst week since February 2009.

End of Day Update

$1,183.96 -7.91

4:19pm EST

The gold price extended its decline amid broad-based liquidation on Wall St. The price of gold has now fallen $46.47, or 3.8%, over the past four trading days and is on pace for its largest weekly decline since February 2009. However, gold has held up considerably better than all other metals, including silver, platinum, and palladium - which have plunged 8.3%, 12.0%, and 21.6% so far this week.

Gold Price: $1,183.96, -7.91, -0.66%

Silver Price: $17.72, -$0.49, -2.69%

US Dollar Index: 85.74, -0.41, -0.47%

Oil Price: $68.01, -$1.86, -2.66%

Copper Price: $2.89, +0.02, +0.61%

10-Year Yield: 3.22%, -0.15, -4.45%

comex gold futures close $13.60 above morning low

3:07pm EST

COMEX gold futures - per the June contract - finished Thursday lower by $4.50, or 0.4%, at $1,188.60 per ounce after reaching as low as $1,175 this morning. Palladium futures plunged $50.75, or 11%, to $408.95, while platinum futures sunk $109.90, or 6.8%, to $1,495.80 per ounce.

euro surges against U.S. dollar

$1,185.29 -6.58

1:59pm EST

After recently hitting a four-year low against the U.S. dollar near 1.214, the euro has surged higher - from near 1.235 at 1pm EST to near 1.250 in the span of a half hour - amid speculation that the European Central Bank (ECB) is considering some sort of intervention to stem the tide in its currency. The gold price showed little reaction as the euro climbed, somewhat surprising considering the inverse correlation between the euro and gold in recent months.

gold resilient amid broad-based sell-off

$1,188.93 -2.95

10:24am EST

The gold price has remained resilient amid broad-based liquidation, trading lower by just $3 at $1,189 per ounce. The S&P 500 has tumbled 31.28, or 2.8%, to 1,083.77 while the CBOE Volatility Index (VIX) has surged 7.96, or 22.5%, to 43.28 - above the highest levels reached during the 1,000 point intra-day plunge in the Dow Jones Industrial Average (DJIA) on May 6.

gold recovers from morning lows

$1,187.33 -4.55

9:26am EST

The gold price recovered a considerable portion of its earlier decline ahead of the U.S. equity market open, rising from an intra-day low near $1,175 to $1,187 per ounce.

Jobless Claims unexpectedly rise

$1,179.21 -12.66

8:47am EST

The weekly jobless claims report showed the number of U.S. workers filing new claims for unemployment benefits rose by 25,000 claims to 471,000 - above the 442,000 median estimate in a Bloomberg News survey of 44 economists. The worse than expected number put further pressure on S&P futures, which fell 22.25, or 2.0%, to 1087.75 Thursday morning.

Gold falls again, dollar rallies

$1,175.67 -16.21

8:32am EST

The gold price was under considerable pressure Thursday morning, falling over 1% and extending its weekly loss to $55, or 4.5%. Weakness in gold came amid a modest rally in the U.S. dollar, to which gold has shown a relatively high correlation in recent weeks. Whether today's divergence between gold and the dollar is the resumption of their more frequent inverse correlation remains to be seen, but this morning's downward move in the yellow metal is definitely a cautionary sign for gold investors.

End of Day Update

$1,191.88 -28.98

4:25pm EST

The gold price fell below the $1,190 level at mid-day before closing above that mark, as the euro staged a strong comeback after hitting a low of 1.2144 against the dollar. There appears to be no single factor for today's weakness in the gold price, as the customary correlations that metal has to the U.S. dollar and the euro have broken down in recent weeks. More likely, today's price action was the result of converging forces, including the unwinding of safe haven bets against the euro as that currency recovered throughout the day, technical profit taking after gold set new record highs last week, and investors retreating to the sidelines in virtually every market to await a reduction in volatility.

Gold Price: $1,191.88, -29.98, -2.37%

Silver Price: $18.21, -$0.78, -4.11%

US Dollar Index: 86.30, -1.08, -1.24%

Oil Price: $71.18, +$1.77, +2.55%

Copper Price: $2.99, -0.03, -1.29%

10-Year Yield: 3.36%, -0.01, -0.29%

comex gold futures sink

2:23pm EST

COMEX gold futures - per the June contract - closed lower by $21.50, or 1.8%, at $1,193.10 per ounce as the yellow metal experienced its worst day in over a month. The entire precious metals sector suffered steep losses, with the largest occurring in palladium - which plumetted $47.30, or 9.3%, to $459.70 per ounce.

Gold, silver plunge amid euro rally

$1,195.82 -25.04

11:07am EST

The gold price plunged 1.9% to below $1,200 per ounce - its worst day since April 16 - amid considerable weakness in precious metals. The silver price fell even more - $0.70, or 3.7%, to $18.26 per ounce. Investors and traders liquidated positions in gold and silver amid the relief rally in the euro - which climbed over 1% against the U.S. dollar to 1.2334.

Aussie tax will drive prices higher: CEO

$1,208.95 -11.91

9:38am EST

Gold Fields (GFI) CEO Nicholas Holland told a mining industry conference in Lima that a planned tax on mining operations in Australia would drive up mineral prices. The revenue raising proposal by the Australian government earlier this month would tax 40% of the profits of mining companies based or operating in Australia. Holland also said gold prices would continue their upward trend for the long term.

ecb intervention rumor lifts euro

$1,207.55 -13.30

9:28am EST

Speculation has arisen that the European Central Bank (ECB) may announce some form of intervention in the currency markets in order to stem the tide of selling in the euro, which fell to a 4-year low against the U.S. dollar yesterday. After falling to as low as 1.214 in overnight trading, the euro rebounded to above 1.23 as word spread that the ECB was considering measures to stabilize markets that have been rattled in recent weeks by the sovereign debt crisis across Europe.

CPI Drops for first time since March 2009

$1,211.64 -9.22

9:23am EST

The April Consumer Price Index (CPI) dropped 0.1% on a month-over-month basis - below the 0.1% rise expected by economists and the first decline since March 2009. The core CPI, which excludes food and energy costs, came in unchanged - also below market expectations.

This data, along with yesterday's PPI figures, will provide the Federal Reserve with further evidence of low inflation to support its dovish monetary policies - one of the primary catalysts for the rise in the gold price in recent years.

Gold price correction reaches 3%

$1,207.01 -13.84

8:15am EST

The gold price fell below the $1,210 level - more than 3% from its all-time high of $1,249.50 reached last Friday - as investors attempt to discern the implications of Germany's ban on short sales of government bonds and bank stocks. Stocks and commodities also pulled back, while the euro tested the 1.22 level again. The chill that Germany's move will have on investment is already being felt. For the time being, investors are covering positions and awaiting the next step, which some fear may be similar bans instituted by other Euro-zone countries whose banks have significant sovereign debt exposure to the "PIIGS."

End of Day Update

$1,220.85 +0.64

4:38pm EST

The gold price endured another volatile ride with the COMEX June gold futures trading down to the $1,206 level at one point early in session before the spot price bounced above $1,225 late in the day. The recovery came despite another strong day for the dollar as investors still see the metal as a safe haven from the twin threats of sovereign debt risk and recessionary relapse that are gathering in the euro-zone. Stocks could not hold early gains and the major indices shed 1% to 1.5% of their value on the day.

Gold Price: $1,220.85, +0.64, +0.05%

Silver Price: $18.98, +$0.06, +0.32%

US Dollar Index: 87.14, +0.99, +1.14%

Oil Price: $69.39, -$0.69, -0.98%

Copper Price: $2.99, +$0.06, +2.05%

10-Year Yield: 3.37%, -0.12, -3.44%

gold futures surge after comex close

2:46pm EST

COMEX gold futures - per the June contract - finished lower by $13.50, or 1.1%, at $1,214.60 per ounce at the New York Mercantile Exchange. However, following the close of open outcry, gold futures surged to $1,227.20 in electronic trading - recovering nearly their entire losses. The rebound in gold came amid a sharp move lower in the euro, which gave up its gains against the U.S. dollar and fell 1.1% to 1.2249 this afternoon.

Goldman revises gold price target

$1,213.40 -6.82

1:14pm EST

Goldman Sachs revised it 6-month target for the gold price to $1,240 per troy ounce. In support of its evaluation, the firm noted, "The behavior of gold prices in the recent period has highlighted that while gold prices and currency moves are often correlated, USD-denominated gold prices are actually driven by more fundamental factors: US real interest rates and physical gold flows."

gold price rebounds as euro turns lower

$1,219.55 -0.66

11:47am EST

The gold price recovered nearly its entire decline from this morning as mid-day trading approached. After falling toward $1,206 this morning, the price of gold rallied back toward the $1,220 level amid a reversal in the euro currency - which gave up its earlier gain against the U.S. dollar and was lower by 0.3% at 1.2355.

Paulson Increases Gold Positions

$1,216.78 -3.43

11:41am EST

The latest 13F filing for Paulson & Co. - the hedge fund run by noted investor John Paulson - showed that the firm raised its stake in multiple large-cap gold miners, initiatied positions in several other gold producers, and maintained its status as the top holder of the SPDR Gold Trust (GLD).

ppi data shows little inflation threat

$1,214.54 -5.68

9:04am EST

The April Producer Price Index (PPI) data showed a mixed picture of inflation, as U.S. wholesale prices dropped by a seasonally adjusted 0.1% on a month-over-month basis - versus a 0.1% median estimate of 76 economists in a Bloomberg News survey. The core PPI - which excludes food and energy costs - increased 0.2% month-over-month, slightly above the 0.1% forecasted by economists.

The relatively moderate inflation data aligns with the Federal Reserve's continued stance over the past year that inflationary pressures remain subdued - one of the main reasons why the Fed has stated that interest rates need to remain near historic lows for an "extended period" of time. This dovish policy has in turn been one of the driving forces behind the ascent in the gold price in recent years.

Gold price pressured, euro rebounds

$1,210.18 -10.04

8:12am EST

The gold price fell overnight with the euro firming against other currencies, as investors who drove short positions in the euro to a record high last week began unwinding them to take profits after the euro hit a four-year low against the dollar. While pessimism still attends the debt situation in Europe, sentiment has eased from the dire levels reached in recent days. Stocks and commodities are up in the early session, with crude oil gaining after five straight down days; but gold and silver prices are swooning as risk aversion abates.

End of Day Update

$1,220.21 -10.22

5:12pm EST

The gold price finally succumbed to the sell-off that hit the broader commodities complex after holding near last Friday's close for the better part of the session. Concerns over demand from Europe and China had industrial metals sharply lower with the July copper contract losing 6.4% on the day. The silver price gave up 2.4% and crude oil was off another 1.7%.

Gold Price: $1,220.21, -10.22, -0.83%

Silver Price: $18.88, -$0.46, -2.38%

US Dollar Index: 86.14, +0.04, +0.05%

Oil Price: $70.41, -$1.21, -1.69%

Copper Price: $2.97, -$0.16, -5.41%

10-Year Yield: 3.49%, +0.04, +1.16%

COMEX Gold Ekes out a gain

2:44pm EST

COMEX June gold futures gained $0.30 to close at $1,228.10 per ounce. The silver contract for July delivery fell $0.31 to $18.91 per ounce, while the front-month copper contract for July delivery broke below $3.00 for the first time since February, plummeting $0.20 to $2.92, a 6.4% drop.

$2,000 Gold by End of 2010?

$1,225.94 -4.49

12:49pm EST

Rob McEwen, Chairman and CEO of US Gold (UXG), and founder and former Chairman of Goldcorp (GG), in a CNBC interview on Monday morning predicted the gold price will reach $2,000 per ounce by the end of 2010, and could reach $5,000 by 2012-2014.

“We have declining annual production [of gold] and we have massive amounts of monetary stimulation that will debase the currencies around the world and cause people [to have] a loss of confidence and basically cause people to go to an asset that holds its value,” stated McEwen. He went on to say that governments have tried to deal with the economic challenges by deferring the pain and printing money, and we have yet to see many of the eventual consequences of these policies.

China Raises Treasury Holdings to $895bn

$1,235.83 +5.39

10:43am EST

The U.S. Treasury Department reported that China raised its holdings of U.S. Treasury securities by 2% to $895.2 billion - its first increase in six months. Total foreign holdings of Treasury securities climbed by 3.5% to $3.88 trillion.

The increase by China may help to alleviate concerns that one of the America’s largest buyers of Treasuries is considering scaling back its purchases amid the unprecedented level of fiscal and monetary stimulus implemented by the U.S. in the past several years. While numerous bond bears have highlighted China’s frustration over the supply of U.S. government bonds as a precursor for higher rates, U.S. treasuries have performed particularly well in recent weeks as the European sovereign debt crisis has intensified.

Gold prices slide from overnight highs

$1,229.32 -1.11

8:32am EST

The gold price eased back from the $1,242.50 high hit overnight as the euro recovered from a four-year low of 1.224 against the U.S. dollar. Stock futures also reversed their earlier losses with the S&P 500 Index futures trading near their fair value from Friday's close. Crude oil traded modestly higher, but most other commodities continued to slide. The weekly economic calendar includes a manufacturing report today, the Producer Price index on Tuesday, and the release of the April FOMC minutes on Wednesday.

End of Day Update

$1,230.43 -1.80

4:21pm EST

The gold price exhibited significant intraday volatility, just missing the $1,250 mark in the morning session, then plunging to the $1,230 level before rebounding to finish modestly lower. Stocks opened lower and continued to fall during the day as investors weighed the implications of deep spending cuts called for under the $1 trillion European rescue plan. The euro dropped to a 19-month low, falling below 1.24 versus the dollar. The broader commodity complex also finished lower with crude oil dipping below $72.00 and the copper price shedding $0.10.

Gold Price: $1,230.43, -1.80, -0.65%

Silver Price: $19.32, -$0.13, -0.67%

US Dollar Index: 86.23, +0.79, +0.93%

Oil Price: $71.75, -$2.65, -3.56%

Copper Price: $3.13, -$0.10, -3.02%

10-Year Yield: 3.45%, -0.08, -2.10%

Gold Price Forecast Raised to $1,250

$1,232.87 +0.64

2:32pm EST

Frankfurt-based Commerzbank AG raised its gold price forecast to $1,250 per ounce by the end of 2010.

Gold Price Whipsaw Ensues

$1,236.32 +4.09

12:16pm EST

The gold price traded in a volatile range as afternoon trading approached, with the yellow metal falling as much as $28 from its intra-day high near $1,250, but subsequently turning back into positive territory.

Gold Reverses Sharply Lower

$1,221.67 -10.56

11:29am EST

Despite opening higher, the gold price reversed sharply to the downside as morning trading progressed amid broad-based liquidation. This type of action is frequently indicative of a change in the short-term trend, and given the cautionary signs GoldAlert alluded to in its "Top in the Gold Price?" story yesterday, it appears that these signals could be bearing fruit.

Gold Rallies Toward $1,250

$1,247.15 +14.92

8:23am EST

The gold price rallied toward $1,250 per ounce ahead of the U.S. equity market open as further concerns arose over the European sovereign debt crisis. The euro fell to 1.2435 against the U.S. dollar - its lowest level since November 2008 - after a report surfaced that French President Nicolas Sarkozy allegedly threatened to pull France out of the euro last week if German Chancellor Angela Merkel did not agree to support a European Union bailout plan.

While Germany ultimately did participate in the plan, the mere threat raised questions over the commitment of various European nations to remain in the EU should additional sovereign debt crises arise. As a result of the strength in gold and the euro's weakness, the euro-denominated gold price surpassed 1,000 per ounce for the first time ever Friday morning.

End of Day Update

$1,232.23 -8.09

4:42pm EST

The gold price gave back a modest portion of the week's gains, but remained above its previous record high of $1,226.50 per ounce. The U.S. dollar, however, continued its run against the euro, with the U.S. Dollar Index rising 0.6% to 85.38 - its highest level since April 2009.

Gold Price: $1,232.23, -8.09, -0.65%

Silver Price: $19.47, -$0.06, -0.31%

US Dollar Index: 85.36, +0.54, +0.64%

Oil Price: $73.90, -$1.75, -2.31%

Copper Price: $3.22, +$0.03, +1.04%

10-Year Yield: 3.54%, unchanged, +0.00%

sec to unveil new circuit breaker rules

2:57pm EST

After last week's 1,000 point intra-day drop in the Dow Jones Industrial Average (DJIA), the Securities and Exchange Commission (SEC) began an investigation as to the causes of the market plunge. As a result of the investigation, the SEC reportedly plans to make an announcement on new stock market rules next week. Concurrently, the stock exchanges will make regulatory filings to reflect these new rules.

Speculation has arisen that the SEC is considering new rules that would involve uniform individual stock circuit breakers, a global circuit breaker, and the cancelling of certain trades that occurred after a stock had fallen past a certain threshold. The challenges of developing these rules involve determining at what percentage should the individual stock circuit breakers be utilized, for how much time will they last, and the appropriate percentage range for cancelling trades.

COMEX gold, silver futures decline

2:45pm EST

Following yesterday's ascent to a new all-time high, COMEX gold futures - per the June contract - closed down by $13.90, or 1.1%, at $1,229.20 per ounce. Silver futures - per the July contract - fell $0.16, or 0.8%, to $19.49 per ounce. Platinum and palladium futures also retreated 0.4% and 0.7%, respectively, while copper futures for June delivery gained $0.04, or 1.4%, to $3.22 per pound.

Jobless Claims Match Estimates

$1,242.07 +1.75

11:49am EST

The weekly jobless claims report showed the number of U.S. workers filing new claims for unemployment benefits fell for a fourth consecutive week by 4,000 claims to 444,000. The decline was in line with consensus estimates for the number. The number of workers who continued to draw benefits for the week ended May 1 increased by 12,000 to 4,627,000.

The gold price was little changed on the release of the report, but has since reversed a modest loss on the day and at mid-day was posting a slight gain.

Gold price eases after record close

$1,237.34 -2.98

8:25am EST

The gold price slid overnight after closing at record highs for the past two sessions. The U.S. dollar is showing strength against most other major currencies for the third straight day, putting mild pressure on other commodity prices, including the silver price. Stock indices were mixed heading into the open and the 10-year Treasury note yield was unchanged in early trading. Besides this morning's jobless claims report, there is little on the economic calendar for the remainder of the week to serve as a catalyst for the market, unless reports deviate substantially from expectations.

End of Day Update

$1,240.32 +7.57

4:17pm EST

The gold price extended its record-setting advance, closing at an all-time high of $1,240.32. The gold price managed to achieve its gains despite the strength of the U.S. dollar, which was higher against nearly all major currencies on the day. Commodities were mixed with crude oil and copper sliding, but the broader energy complex rose and the silver price increased. Stocks finished the day strong with the major market indices posting increases of 1.4% and the NASDAQ Composite closing up 2.1%.

Gold Price: $1,240.32, +7.57, +0.61%

Silver Price: $19.53, +$0.18, +0.93%

US Dollar Index: 84.85, +0.38, +0.46%

Oil Price: $75.31, -$1.06, -1.39%

Copper Price: $3.18, -$0.02, -0.58%

10-Year Yield: 3.58%, +0.05, +1.42%

COMEX gold, silver futures climb

3:27pm EST

COMEX gold futures - per the June contract - finished higher by $22.80, or 1.9%, at $1,243.10 per ounce, another new record high. Silver futures - per the July contract - rallied $0.37, or 2.0%, to $19.66 per ounce, its highest level since March 2008.

bearish market sentiment surges

$1,241.59 +8.84

10:28am EST

The weekly Investors Intelligence sentiment survey showed a dramatic drop in the percentage of bulls - from 56% last week to 47.2% - and a surge in the percentage of bears, from 18.7% to 24.7%. Advisors classified under correction rose from 25.3% to 28.1%. As GoldAlert noted last week, the formerly very bullish sentiment was a cautionary signal, and the 1,000 point intra-day drop in the Dow Jones Industrial Average soon followed. The huge increase this week in bearish sentiment may suggest from a contrarian perspective that the recent correction in financial markets has run its course.

Gold Price Continues to Climb

$1,238.59 +5.84

8:39am EST

The gold price continued its ascent early in the session as momentum trading has added more power to the climb that investment demand has mustered for the metal. With the gold price and the world's reserve currency, the U.S. dollar, showing strength at the same time, it is clear that gold is rivaling paper currencies as a preferred store of value. If fiat currencies continue to slide in value, gold may soon become the preferred medium of exchange between nations as well. Most markets are modestly up this morning, including European stocks. But with paper currencies crumbling, other assets may best be valued against a more stable yardstick than currencies - and that yardstick may soon become the gold price.

End of Day Update

$1,232.75 +31.57

4:15pm EST

The gold price set a new record high as concerns over the inflationary implications of the $1 trillion European bailout began to emerge among investors. While the rescue plan allayed fears of sovereign debt default - and the incipient doubts that grew last week over the solvency of many large European banks which hold sovereign debt paper - the additional liquidity unleashed by the plan had investors looking for protection against inflation and crumbling currencies. The gold price is now at or near its all-time high in virtually every major currency.

Gold Price: $1,232.75, +31.57, +2.63%

Silver Price: $19.35, +$0.85, +4.59%

US Dollar Index: 84.52, +0.36, +0.43%

Oil Price: $75.97, -$0.83, -1.08%

Copper Price: $3.17, -$0.06, -1.84%

10-Year Yield: 3.53%, -0.01, -0.28%

gold futures finish at new closing high

2:14pm EST

COMEX gold futures - per the June contract - finished the day at a new all-time closing high of $1,220.30 per ounce - surpassing the $1,217.40 level closed at on December 3, 2009. The next target upon which gold may have its sites set is the intra-day record high of $1,227, also reached in early December.

Fed announces test of deposit program

$1,217.92 +16.74

11:39am EST

Lost among yesterday's headlines of Europe's $1 trillion bailout plan was the Federal Reserve's own announcement of a trial-run for a new policy tool aimed at quickly draining liquidity from the monetary system. Next month, the Fed will test its "term deposit program" in which it will offer short-term deposit instruments similar to bank certificates of deposit to member banks. The deposits will pay interest determined on a competitive auction basis and are aimed at taking money out of circulation, one method of fighting inflation.

A trial run for the program is expected to occur next month and its purpose is to give member banks a chance to experience how the program will work, if and when the Fed decides to implement it. The program was described in Congressional testimony presented by Federal Reserve Chairman Ben Bernanke in March, as part of a discussion of other policy tools the Fed was developing in connection with an "exit strategy" for the massive $2 trillion quantitative easing programs instituted during the height of the financial crisis.

Chinese economy overheating?

$1,222.58 +21.39

10:14am EST

A bevy of economic data from China was released, with the large majority showing an economy that is expanding at a more rapid pace than economists had expected. Chinese inflation data came in higher than expected, with consumer prices rising 2.8% in April on a year-over-year basis - above the 2.4% rise in March and the 2.7% median estimate in a Bloomberg News survey of 30 economists. Producer prices increased 6.8%, also exceededing market expectations.

April retail sales came in at 18.5% versus 18.2%. Real estate prices in April surged 12.8%, while industrial production rose 17.8% - below the 18.5% market estimate.

The mostly positive data raised concerns that the Peoples' Bank of China (PBOC) may further tighten monetary policy to cool off what many believe to be an overheated economy. While threats of tighter monetary policy have generally provided a headwind for the gold price, the deflationary concerns emanating from the sovereign debt crisis in Europe have overshadowed the headlines from China, and helped propel the price of gold to within $5 of its all-time high in U.S. dollars.

Euphoria fades, Gold price rebounds

$1,215.71 +14.53

8:25am EST

The gold price was trading sharply higher as the relief rally in the euro and stock markets following the announcement of the European Central Bank's $1 trillion rescue plan gave way to the sober realization that long-term the plan will result in a cheaper euro and inflation. The U.S. dollar rebounded versus the euro and pound, and the broader commodity complex traded lower. Stock markets worldwide gave up a portion of the gains achieved yesterday in the momentary euphoria of the rescue plan's announcement. Futures in the S&P 500 Index were trading down over twelve points.

End of Day Update

$1,201.18 -6.78

4:23pm EST

The gold price finished lower on the day, but well off the lows of the session. The spot price of gold had fallen as low as $1,184.40 overnight on news of the European Central Bank's debt crisis rescue plan, but steadily recovered throughout the trading day. The major stock indices hit their highs of the day within minutes of the opening bell, and finished just slightly off their highs. Futures on the S&P 500 Index were up as much as $54 in pre-market trading, with the cash index closing up 48.85 at 1,159.73. Commodities were up across the board, but bonds were down with funding flows reallocated to riskier assets as the yield of the 10-year Treasury note climbed 11 basis points to 3.54%.

Gold Price: $1,201.18, -6.78, -0.22%

Silver Price: $18.48, +$0.08, +0.43%

US Dollar Index: 84.18, -0.27, -0.32%

Oil Price: $77.15, +$2.04, +2.72%

Copper Price: $3.23, +$0.08, +2.61%

10-Year Yield: 3.54%, +0.11, +3.21%

COMEX gold futures retreat

3:17pm EST

The COMEX gold futures contract for June delivery fell $12.60 to $1,198.30 an ounce on Monday spurred by news of the European Central Bank's bailout plan for beleaguered euro-zone countries. The announcement caused investors to abandon safe haven assets like gold and U.S. Treasuries, and flock to stocks and the broader commodities complex.

Gold Price Holding below $1,200

$1,199.23 -8.73

12:42pm EST

The gold price continued to trade below the $1,200 level at mid-day in the wake of reports of the massive, $1 trillion euro-zone bailout package crafted by the European Central Bank over the weekend. Nearly all other markets are trading higher, with the major stock indices gaining more than 4% and energy and base metals posting increases over 2%. Funds have been fleeing safe haven assets such as gold, Treasuries and the greenback, with the U.S. Dollar Index down 0.5% to 84.00 and the yield on the 10-year note surging up 13 basis points to 3.56%.

Feds eyeing silver price manipulation?

11:51am EST

The New York Post reported that federal officials are pursuing civil and criminal investigations into trading activity in the silver market by JP Morgan Chase. As reported by the New York Post, officials opened their investigations after the Post previously published charges by an unnamed whistleblower of silver market manipulation by JP Morgan Chase. The investigators are focusing on trades transacted on the NYMEX and the London Bullion Market Association. JP Morgan Chase has not been charged with any wrongdoing. JP Morgan and the federal agencies named in the story, the Department of Justice and the Commodities Futures Trade Commission, declined to comment on the report.

vix has largest-ever single-day drop

$1,196.70 -11.25

10:02am EST

While last week saw one of the largest-ever increases in the CBOE Volatility Index (VIX), at its intra-day low so far this morning the VIX fell 37.2% - its largest single-day drop ever.

BOE leaves rates unchanged

$1,198.48 -9.48

9:44am EST

The Bank of England (BOE) decided to leave its benchmark interest rate at 0.5% at its latest monetary policy meeting. The BOE also kept its 200 billion pound ($297 billion) government bond purchase program for the fourth consecutive month - its own form of quantiative easing - as the central bank chose to maintain its dovish stance amid ongoing sovereign debt concerns across Europe.

ECB pledges $1 Trillion for Rescue

$1,197.41 -10.55

8:26am EST

The gold price fell below $1,200 after finance ministers of the European Central Bank (ECB) agreed to a $1 trillion rescue package to combat the spreading debt crisis in the euro zone that includes a pledge by the ECB to purchase government and corporate debt. The package essentially defuses the Greece debt crisis and heads off similar deterioration in the debt owed by Spain and Portugal. Markets around the globe shot up on the news, except for the gold price and the U.S. dollar as recent "safe haven" purchases were liquidated. But the ECB rescue package merely transferred the debt problem from financially vulnerable countries to stronger ones, which while bailing out debtholders - essentially other European banks - does nothing to strengthen those economies and only defers the day of reckoning for the euro. Despite the present sell-off in the gold price, the latest move by the ECB makes the case for gold more compelling.

End of Day Update

$1,207.96 -2.71

4:49pm EST

The gold price closed slightly lower on Friday, but still managed to post a 2.5% gain on the week. At $1,208 per ounce, the price of gold is 1.5% from its all-time high of $1,226.50.

The gold price has continued to rise amid heightened skepticism of fiat currencies across the globe, with the euro feeling the most pressure in recent weeks due to the ongoing sovereign debt issues in Greece, Spain, and Portugal.

The spot silver price surged 4.3% on the day, as gold's sister precious metal rallied on speculation of further currency debasement to deal with the deflationary debt issues in Europe.

Gold Price: $1,207.96, -2.71, -0.22%

Silver Price: $18.36, +$0.75, +4.26%

US Dollar Index: 84.43, -0.46, -0.54%

Oil Price: $75.35, -$1.76, -2.28%

Copper Price: $3.15, +$0.04, +1.14%

10-Year Yield: 3.42%, +0.03, +0.77%

Gold Recovers, COMEX futures climb

$1,209.72 -0.95

1:18pm EST

The spot gold price recovered nearly its entire decline in mid-day trading, after falling this morning below $1,200 per ounce. COMEX gold futures - per the June contract - rallied over $15 to $1,213 after initially opening lower. The reason for the large discrepancy between the spot gold price and price of gold futures is that the futures close on the COMEX at 1:30pm EST, and the spot gold price moved considerably higher after the COMEX close yesterday amid the stock market plunge.

Dow Jones' Wild Ride

$1,200.10 -10.57

11:36am EST

The wild ride on Wall Street has continued, with the Dow Jones Industrial Average recovering nearly its entire 280 point decline this morning, and then turning back lower by roughly 100 points. The CBOE Volatility Index (VIX) surged to as much as 42.15, exceeding yesterday's high of 40.71. Meanwhile, the gold price has remained within a range of $1,195 and $1,205 as the yellow metal continues to consolidate yesterday's large gains.

German Parliament approves aid package

$1,204.03 -6.64

10:03am EST

Germany's parliament voted for a 22.4 billion euro aid package to Greece over three years, as part of the 110 billion euro rescue plan announced by the International Monetary Fund (IMF) last week. With the Greek parliament voting to approve the country's austerity package on Thursday, the next step in the bailout process involves German Chancellor Angela Merkel signing the bill into law. However, the German public is largely opposed to bailing out Greece, and a group of academics have filed a lawsuit with the constitutional court in Karlsruhe, aiming to prevent Germany from participating in the bailout.

SEC to investigate market plunge

$1,201.05 -9.62

9:52am EST

The Securities and Exchange Commission (SEC) announced that it plans to investigate Thursday's market sell-off amid speculation that the plunge was due at least in part to either accidentally or maliciously entered orders. The SEC also stated that it plans to examine if the stock exchanges had the appropriate controls in place to prevent the unorderly activity from escalating.

10% - 20% Correction Coming?

$1,198.18 -12.49

9:05am EST

Following one of the largest intra-day drops in stock market history, the firm that was rumored to be responsible for the collapse, Citigroup, issued a report projecting a 10-20% correction in global equities. Tsutomu Fujita, an analyst at Citi, wrote that "with global equities having rallied 79.9% in a scant 13 months through April, we feel it would be only natural to go through a correction of around 10% or 20% over two or three months." However, at yesterday's intra-day low of 1,065.79 on the S&P 500, the market had already corrected 12.6%. The timing of this report may have therefore been more beneficial to investors if it had been released prior to, rather than after the correction that has already ensued.

Gold slides after jobs report

$1,196.58 -14.09

8:49am EST

The gold price is trading lower by over 1% following the April nonfarm payrolls report that showed job growth of 290,000 versus market expectations of 187,000. The unemployment rate came in at 9.9%, versus a 9.7% estimate, however. The U.S. Dollar Index (DXY) is also trading lower, by 0.1% at 84.79, while the euro is up 0.8% to 1.2728 versus the greenback.

End of Day Update

$1,210.67 +35.01

4:38pm EST

The gold price surged to a new 2010 high - and only $16 below its all-time high - on one of the most memorable and volatile days in stock market history. While the U.S. market traded lower by roughly 1% for most of the day, at approximately 2:00pm EST it began to plummet lower, with the Dow Jones Industrial Average falling as much as 998.50 points - its largest nominal decline ever - before recovering to finish lower by "only" 348 points. The CBOE Volatility Index (VIX) soared over 60% at one point, from 25 to over 40, before finishing at 32.80.

While the exact cause of the market crash is unknown, the extreme volatility is unlikely to ever be forgetten. In the near term it is likely to create further uncertainty, which if today is any indication, will continue to benefit the gold price.

Gold Price: $1,210.67, +35.01 +2.98%

Silver Price: $17.61, +$0.13, +0.74%

US Dollar Index: 84.63, +0.46, +0.55%

Oil Price: $76.89, -$3.08, -3.85%

Copper Price: $3.08, -$0.07, -2.33%

10-Year Yield: 3.39%, -0.14, -4.07%

gold eclipses $1,200 before retreating

$1,191.61 +15.95

2:27pm EST

The gold price briefly broke through $1,200 per ounce while the broader market plunged over 3% at one point. Gold has since retreated toward the $1,190 level, but remains higher on the day by over 1.3%.

jobless claims - a mixed bag

$1,179.76 +4.10

8:44am EST

The weekly jobless claims report included some discouraging and encouraging data, with initial jobless claims coming in at 444,000 - slightly above the 440,000 median estimate from a Bloomberg survey of 45 economists. On the positive side, however, claims fell by 7,000 from the prior week, and continuing claims dropped to 4,594,000 from 4,653,000.

Gold up after ECB rate decision

$1,179.36 +3.71

8:27am EST

The gold price traded modestly higher ahead of the U.S. equity market open, while the euro sunk to 1.2712 against the U.S. dollar - a 14-month low - after the European Central Bank (ECB) kept its benchmark interest rate at an all-time low of 1.0%.

Speculation has arisen that the ECB may be forced to adopt quantitative easing measures (the fancy term for printing money) to calm financial markets that have come unravelled in various European nations due to the sovereign debt problems in Greece, Spain, and Portugal, among other countries. ECB President Jean-Claude Trichet will hold his usual post-monetary policy meeting press conference at 1:30pm local time to discuss the central bank's views on monetary policy and other economic issues facing the Eurozone.

End of Day Update

$1,175.66 +2.24

4:35pm EST

The gold price advanced on the day after early selling pressure sent the metal as low as $1,156.20. Reports of deadly demonstrations in Greece in protest of severe austerity measures contained in the latest bailout package for the country had investors shunning most risk assets as well as risky currencies. Yet, the gold price prevailed as safe haven buyers moved in, boosting gold along with the U.S. dollar and Treasury instruments. U.S. equities closed down as did much of the broader commodity complex, with oil shedding more than $3.00 per barrel for the second straight day.

Gold Price: $1,175.66, +2.24, +0.19%

Silver Price: $17.48, -$0.40, -2.24%

US Dollar Index: 84.11, +0.81, +0.97%

Oil Price: $79.68, -$3.06, -3.70%

Copper Price: $3.15, -$0.03, -1.02%

10-Year Yield: 3.54%, -0.05, -1.39%

comex gold futures finish higher

2:16pm EST

COMEX gold futures finished higher by $5.80, or 0.5%, at $1,175 per ounce, after recovering from as low as $1,155 this morning as the euro rebounded against the U.S. dollar. Copper futures - per the July contract - fell $0.03, or 0.9%, to $3.15 per pound, the lowest level since mid-February.

Gold rebounds as violence rocks Greece

$1,170.23 -3.18

11:04am EST

The gold price rebounded, erasing earlier losses that saw the metal's spot price hit $1,156.20. Equities also bounced off intra-day lows although the dollar remains firm. The price action may be related to safe haven buying with investors fleeing everything European after reports of violent demonstrations in Greece over austerity measures contained in the bailout package.

does bullish sentiment warrant caution?

$1,161.36 -12.05

9:49am EST

The weekly Investors Intelligence sentiment survey showed another considerable rise in the percentage of bulls - from 54% last week to 56% - as well as an increase in the percentage of bears from 18.0% to 18.7%. Advisors classified under correction fell from 28.0% to 25.3%. While the percentage of both bulls and bears rose, the bullish level reached its highest point in many months, a potential red flag from a contrarian perspective for equity investors.

ADP report slightly above expectations

$1,170.43 -2.96

8:52am EST

The April ADP employment report showed a gain of 32,000 - the largest increase since January 2008, and slightly above the 30,000 estimate expected by economists. The ADP report does not factor in federal workers or temporary census workers, part of the reason why economists are expecting Friday's nonfarm payroll report to show a 185,000 increase in April.

Euro falls below $1.30

$1,169.08 -4.33

8:08am EST

The gold price traded lower on the continuing slide in the euro, which sank below the $1.30 level against the U.S. dollar. Prime Minister Angela Merkel told the German parliament that "nothing less than the future of Europe" was at stake regarding the successful passage and implementation of the Greece aid package. Meanwhile, demonstrations and a general strike were staged by Greeks angry over the proposed austerity measures contained in the rescue package.

End of Day Update

$1,173.41 -8.86

4:38pm EST

The gold price reversed its premarket gains and fell below the $1,170 level before recovering to finish at $1,173.41. The gold price caved to selling pressure that sent assets across all markets lower. However, the gold price fared better than the broader commodity complex, losing only a fraction of a percentage point - versus the 3-4% drop in other metals and energy. While the U.S. dollar's strength might be partly to blame for the gold price's decline today, it's likely that investors also took profits after a two-week rally that saw the gold price climb 3.9%.

Gold Price: $1,173.41, -8.86, -0.75%

Silver Price: $17.91, -$0.91, -4.79%

US Dollar Index: 83.35, +0.99, +1.20%

Oil Price: $82.58, -$3.61, -4.19%

Copper Price: $3.18, -$0.12, -3.60%

10-Year Yield: 3.60%, -0.08, -2.22%

comex gold futures reverse to downside

2:42pm EST

COMEX gold futures closed lower by $14.10, or 1.2%, at $1,169.20 per ounce. Gold futures moved advanced this morning, reaching $1,192.80 - a five-month high - before reversing to the downside along with virtually all dollar-denominated asset classes.

Gold in Yen Rises to Highest Since 1983

$1,175.96 -6.31

12:05pm EST

Earlier this morning the gold price in Japanese yen rose to 112,669 - its highest level since February 1983. Despite remaining below its U.S. dollar-denominated all-time high of $1,226.50, in recent weeks the price of gold has advanced to new highs in terms of numerous other fiat currencies - including the euro, Swiss franc, and British pound. While it is widely known that gold remains in a long-term bull market, another way to look at this is that fiat currencies remain in a bear market versus gold.

Australia's 6th rate hike in 7 months

$1,185.92 +3.64

10:07am EST

The Australian central bank raised its benchmark interest rate by 25 basis points to 4.5% - the sixth rate hike in seven months. Glenn Stevens, governor of the Reserve Bank of Australia, stated that rates for most borrowers are now at "around average levels," which fueled speculation that the central bank may either pause the rate increases at the next policy meeting, or at least reduce the pace of interest rate hikes.

The Australian economy - home to a substantial gold mining industry - has recovered from the financial crisis at a much quicker pace than that of the U.S. or most European nations, such that the nation's central bank has been one of the few across the globe to normalize monetary policy.

Gold Price Up on More Greek Worries

$1,187.65 +5.38

8:22am EST

The gold price traded higher as the euro matched the one-year low against the dollar that it hit last week. Skepticism over Greece's ability to achieve the deep budget cuts agreed to as part of the $146 billion rescue package sent the euro falling against the dollar, but the gold price continues to climb as investors seek alternatives to currencies which are increasingly losing their value.

End of Day Update

$1,182.28 +2.78

4:50pm EST

The gold price extended a two-week rally in spite of a sharply higher U.S. dollar. The dollar was buoyed by reports of strength in manufacturing and construction spending in the U.S., and the greenback rallied to its highest point versus the Japanese yen since last August. The euro fell after investors digested news of a three-year, $146 billion aid package to Greece on fears that similar rescue measures may be required of other financially vulnerable euro-zone countries.

Gold Price: $1,182.28, +2.78, +0.24%

Silver Price: $18.81, +$0.15, +0.80%

US Dollar Index: 82.34, +0.48, +0.58%

Oil Price: $86.06, -$0.09, -0.10%

Copper Price: $3.30, -$0.06, -1.70%

10-Year Yield: 3.69%, +0.04, +1.10%

COMEX gold closes at 5-Month high

2:48pm EST

Gold for June delivery on the COMEX finished higher by $2.60, or 0.2%, at $1,183.30 per ounce - its highest level in five months.

Euro Gold Price Climbs to Record High

$1,185.42 +5.92

11:57am EST

The euro has steadily weakened over the course of the day today despite the news of a massive bailout for Greece. Many had speculated that the announcement of a rescue package would stabilize the euro, which has declined 7.5% versus the dollar coming into today. However, worries over whether other EU nations will be lining up in future months and years for billions more in bailouts led investors to continue shedding euro holdings. The euro-denominated gold price, at 899, reached a new all-time high - and is up 7.0% in just the last 30 days.

China Tightens Money, Market Wobbles

$1,181.60 +2.10

9:59am EST

China raised its banks' reserve ratio requirement by 50 basis points to 17%, the third increase in 2010. Meanwhile, the Chinese stock market has displayed considerable underperformance in recent months relative to other equity markets around the world.

Prieur du Plessis, author of the website Investment Postcards from Cape Town, noted that the Shanghai Stock Exchange Composite Index (SSEC) is one of the few major exchanges across the globe trading below both its 50-day and 200-day moving averages. In addition, he pointed out that the SSEC remains 13% below its January 2010 high and 53% below its October 2007 all-time high - significantly lagging the S&P 500, which is 3% above its January 2010 high and 22% below its all-time high from October 2007.

Given that the Chinese market bottomed in November 2008 - ahead of the U.S. market in March 2009 - du Plessis noted that the recent underperformance may "spell danger for global stocks, i.e. the proverbial canary in the coal mine."

Gold price steady after Greek rescue

$1,181.02 +1.52

9:07am EST

The gold price held the $1,180 level despite strength in the U.S. dollar versus its European counterpart. The euro slid against the dollar despite the announcement of a 3-year, $146 billion rescue package for Greece over the weekend. Concerns over the prospect for future bailouts of other debt-plagued nations such as Spain and Portugal kept the euro under pressure, buoying the price of gold. Investors have poured funds into physical gold bullion and gold ETFs, seeking a bulwark against the widespread currency debasement occurring across the globe.

Jobs Report, the Fed, and Gold

$1,182.38 +2.88

8:18am EST

The coming week's economic calendar is highlighted by Friday's release of the April nonfarm payrolls report, which is expected to show a rise of 200,000 jobs. Most economists have referenced the 9.7% unemployment rate as the chief rationale for the Federal Reserve to maintain its zero interest rate policy despite the surge in asset prices and the strong growth in consumer spending indicated by the GDP report released last week.

A strong employment report, specifically from the private sector, would likely lead to a ratcheting up of expectations of a rate hike in 2010. Despite the Greek bailout dominating the news headlines, any and all comments from Federal Reserve officials will continue to impact the bond market as well as the gold price and the U.S. dollar.